USD/INR Price News: Indian rupee jumps back towards 74.00 on market consolidation
- USD/INR consolidates Friday’s heavy gains, remains pressured around intraday low.
- Hopes of RBI’s upward revision to growth forecasts, easing covid infections favor INR bulls.
- US employment data renew tapering tantrums but stimulus news probes greenback buyers.
- Light calendar highlights risk catalysts as the key drivers.
USD/INR takes offers around intraday low of 74.19, down 0.36% intraday near 74.23 by the press time of early Monday. The Indian rupee (INR) pair jumped the most in over a week on Friday after the double whammy of the Reserve Bank of India (RBI) actions and the US jobs report. However, the pair bears return to the table amid sluggish market sentiment.
RBI cut Reverse Repo but refrained from altering the Repo rate during its latest monetary policy meeting. The Indian central bank also sounds cautiously optimistic while pushing for fiscal measures. After the decision, USD/INR gained upside momentum on Friday.
The run-up strengthened after the US employment data for July rekindled Fed’s tapering chatters. The headline US Nonfarm Payrolls (NFP) jumped 943K versus 938K prior (revised from 850K), also crossing the market expectations of 870K, whereas the Unemployment Rate declined to 5.4% from 5.9% in June.
It should be noted that the US Dollar Index (DXY) jumped the most in 18 days following the US jobs report. Though, the recent positive updates concerning the infrastructure spending plan challenge the greenback bulls. Also on the positive side could be the recently easing covid figures from Australia and India.
As per the latest figures, Aussie infections came in around 300 whereas the Indian daily covid numbers rose 35,499. Australia recently refreshed the highest level since August with above 320 figures while Indian numbers also jumped the most since May.
It’s worth observing that an absence of Japanese traders restricts US Treasury bond moves, the key catalyst behind the USD run-up. Additionally, rebound in US stock futures and mildly upbeat Asia-Pacific markets also favor the USD/INR pullback.
For now, USD/INR traders may pay close attention to the US stimulus news and covid updates for fresh impetus amid a light economic calendar.
Technical analysis
USD/INR sellers keep 50-DMA on the radar, around 74.09, unless the quote crosses 74.55-60 area, comprising mid-April lows and late July highs, on a daily closing basis.