USD/INR Price News: Rupee drops below 74.00 despite India’s three-week low covid infections
- USD/INR picks up bids to refresh intraday top, justifies Friday’s Doji.
- India reports the lowest daily virus cases since August 24.
- Market sentiment dwindles amid mixed concerns, ahead of the key US data.
- Light calendar keeps pair buyers at the mercy risk catalysts.
USD/INR takes the bids to 73.68, up 0.21% intraday, ahead of Monday’s European session. In doing so, the Indian rupee (INR) pair fails to cheer the latest improvement in the virus conditions while appreciating the firmer US dollar.
As per the latest virus numbers for India, from Reuters, daily infections drop below 28,591 reported yesterday to 27,254, the lowest in three weeks. Also, the virus-led death toll eased from 338 to 219.
However, chatters over the US Federal Reserve’s (Fed) tapering concerns, backed by the Producer Price Index (PPI) and Philadelphia Federal Reserve Bank President Patrick Harker, underpins the US dollar’s safe-haven demand and propels the USD/INR prices.
In addition to the tapering concerns, chatters over Typhoon Chanthu in China and North Korea’s missile testing add to the US dollar strength.
On the contrary, US stimulus, Iran and the easing of the Sino-American tussles join the vaccine optimism to cite the positive catalysts. US Democrats are up for easing their previous demands to push forward President Joe Biden’s $3.5 trillion stimulus. Biden’s six-pronged strategy and the US-China talks after multiple months of silence favor market sentiment and commodity prices. Additionally, the International Atomic Energy Agency (IAEA) Chief Rafael Grossi recently visited Tehran and returned with the good news of striking a deal with Iran to solve "the most urgent issue" between them.
That said, the US Dollar Index (DXY) stays firmer around 92.70, up 0.08% on a day, whereas the S&P 500 Futures trim early Asian session gains, up 0.18% intraday, by the press time.
Looking forward, US consumer-centric details like Retail Sales and the Consumer Price Index (CPI) will be closely observed for near-term USD/INR moves ahead of next week’s Fed meeting. Meanwhile, risk catalysts mentioned above can entertain the pair sellers.
Technical analysis
Friday’s bullish Doji joins strongest positive MACD signals since early July to direct USD/INR towards 100-DMA resistance near 73.85.