USD/INR Price News: Indian rupee recovers towards 74.50 amid pre-ECB caution
- USD/INR consolidates weekly losses, snaps three-day uptrend to ease from fortnight top.
- US dollar pauses recent run-up on sluggish sentiment, choppy bond yields.
- Virus woes escalate, stimulus chatters, pre-ECB caution adds to the trading filters.
USD/INR bulls probed around 73.77, down 0.06% intraday, after a three-day uptrend during early Thursday. In doing so, the Indian rupee (INR) pair eases from the highest levels in two weeks amid cautious sentiment ahead of the key European Central Bank (ECB) monetary policy meeting.
Behind the moves could be the mixed signals by the key central bankers and the coronavirus fears, as well as wait for the week’s important events, like the ECB and US President Joe Biden’s six-sponged strategy.
The Fedspeak weighs the latest jump in the JOLTS Job Openings to favor tapering of the asset purchases. Recently, St. Louis Fed Bank President James Bullard and New York Fed Bank President John Williams backed tapering in 2021 whereas Dallas Federal Reserve Bank President Robert Kaplan makes the case for an October taper despite cutting on Q3 GDP due to covid. However, policymakers at the ECB have been doubtful of late. Further, members of the BOC and the BOE team also crossed wires and confused markets while conveying the virus-led economic fears.
On a different page, Australia reports the second day of increase in covid cases whereas China marked an uptick in the COVID-19 numbers. On Wednesday, the US, Germany and the UK also marked an increase in daily covid cases. Furthermore, New Zealand and Britain are hopeful over the booster shots of the vaccines. Additionally, Japan is ready to extend the covid-led state of emergency after the activity restrictions end of September 12. At home, India reports a jump in the virus cases by 43,263 and the covid-led deaths also rose by 338 per the latest government data, conveyed by Reuters.
Amid these plays, the US 10-year Treasury yields remain directionless while the US stock futures are down 0.30% intraday by the press time. Further, Asia–Pacific shares track Wall Street’s losses at the latest.
Moving on, market players are likely to remain cautious, mostly keeping the latest risk-aversion wave, ahead of the key European Central Bank (ECB) monetary policy meeting. Also important will be the weekly US job numbers and headlines concerning the coronavirus as well as the US stimulus.
Technical analysis
Although a clear upside break of the 200-DMA, near 73.60, keeps USD/INR bulls hopeful, 100-DMA and a horizontal hurdle since late June, respectively around 73.90 and 74.10, challenge the pair buyers.