Indian Rupee prints four-day downtrend near 81.55 amid mixed sentiment in Asia

  • USDINR rose for the fourth consecutive trading day, despite an improvement in intraday highs of late.
  • China-linked worries are part of a rebound in US Treasury yields that favor bulls.
  • Upside momentum is limited by slow markets and the absence of important data/events.

USDINR drops from intraday peak, but shows a four-day winning streak at 81.55 on Thursday morning. The Indian Rupee (INR), a pair of Indian Rupees, fails to cheer up oil prices despite the recent rebound in US Dollar.

However, the US Dollar Index(DXY), snaps a two day downtrend by posting mild gains of around 106.50 at press time. In doing so, the greenback’s gauge versus six major currencies traces the recently firmer US Treasury yields. The benchmark US 10-year Treasury yields climbed 1.2 basis point (bps) to 3.80%, with the press time printing the first positive in 4 days.

Elsewhere, looming concerns over China’s economic growth and challenges for Asia also exert downside pressure on the INR. “Calibrating China’s zero-COVID strategy to mitigate the country’s economic impact will be critical to sustain and balance the recovery,” said Gita Gopinath, the first Deputy Managing Director of the International Monetary Fund (IMF), at the Caixin Summit on Thursday.

USDINR buyers remain optimistic due to fears of slowing growth and the recent easy inflation from India.

It should be noted that the WTI crude oil prices drop 1.0% to $83.80 during a two-day downtrend while S&P 500 Futures lack clear directions. Also, MSCI’s index of Asia-Pacific shares outside Japan drops 1.7% while easing from the two-month high flashed the previous day.

Moving on, risk factors may drive the gold price amid a dearth of data events prior to the US Weekly Jobless Claims or Philadelphia Fed Manufacturing Survey for December.

Analyse technique

USDINR bulls require a daily close above the 50 DMA hurdle of 81.55 as well as a break of the 21 DMA resistance of 81.9 to keep the reins.


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