USD/INR Price News: Indian rupee eyes more gains while above 100-DMA

• USD/INR looks vulnerable on New Year Eve amid a four-day downtrend.
• US dollar index is holding the higher ground, courtesy of year-end flows.
• The daily technical setup suggests more pain for the USD/INR pair.

USD/INR is fluctuating between gains and losses on the final trading day of 2021, as it wavers near the midpoint of the 74.00 level.

The pair is looking to extend its four-day losing streak, despite the rebound in the US dollar across the board, as the daily technical setup suggests more room to the downside.

At the time of writing, the spot is trading almost unchanged on the day, pressuring lows near 74.40.

“A number of traders and corporates have been wrong-footed by what has been an unprecedented finish to the year for the rupee. A move above 74.50 was never on the cards. The RBI likely helped the rupee when it fell to below 76, and from there, the dollar has been in a free fall. The pair has shown little respect to key support levels or to momentum indicators that it is highly oversold,” Reuters reports, citing a dealer at a private bank.