USD/INR Price News: Rupee buyers attack 74.50 as India gets global help amid coronavirus crisis
- USD/INR stands on the slippery ground during the five-day downtrend.
- UK’s consignment of ventilators reach India, helps from US, EU, Russia and Middle East are in the pipeline.
- India’s daily COVID-19 positivity rate jumps to 20%.
- Fed, covid to direct near-term moves, US stimulus shouldn’t be ignored as well.
USD/INR takes offers around a one-week low while flashing 74.56, down 0.33% intraday, during the initial Indian session on Tuesday. In doing so, the Indian rupee (INR) pair drops for the fifth consecutive day as global leaders unite to help the nation overcome the pandemic.
Indian markets buck the sluggish trend in Asia-Pacific as the first international help, in the form of the UK’s ventilators and oxygen concentrators, reach New Delhi. While Britain’s kind gesture is the first, the US, Europe, Russia and China, not to forget Saudi Arabia and Dubai, are all united to help the Asian nation overcome the health crisis in history.
Even so, the nation registers a fifth consecutive day with infections above 300K level, recently around 344,000. The Indian Health Ministry also mentioned that the daily positivity jumps to 20% while 10 states, unfortunately, contribute 77% of the total virus-led deaths.
On the other hand, Western leaders prepare to open international boundaries for vaccinated people while faster jabbing increases the odds of a soon and sustained economic run-up.
Taming the bulls are doubts over US President Joe Biden’s infrastructure spending, due to the latest US Census signaling power shift, as well as indecision ahead of the Federal Reserve’s rate decision on Wednesday.
Amid these plays, S&P 500 Futures rise 0.20% whereas India’s BSE Sensex also add half a percent by the press time.
Moving on, USD/INR traders may cheer further incoming of global helps to combat the pandemic. However, the pre-Fed fears and US stimulus headlines may offer intermediate moves and hence should be observed for clear direction.
Technical analysis
While the 75.00 threshold guards short-term USD/INR upside, sellers should remain cautious until the quote stays above 74.45/40 support zone comprising 21-day SMA and an ascending support line from April 08.