USD/INR attempts to advance around 83.10, Fed decision eyed


  • USD/INR strengthened due to the release of a widened trade balance from India.
  • India's soft inflation in August is putting pressure on the Indian Rupee (INR).
  • RBI Governor Shaktikanta Das anticipates inflation to ease starting from September onward.
  • US Dollar (USD) experienced losses ahead of the Fed’s interest rate decisions on Wednesday.

USD/INR attempts to continue the winning streak that began on Tuesday, trading higher around 83.10 during the Asian session on Monday. The Indian Rupee (INR) is experiencing downward pressure due to the trade balance figure.

The report indicates that the trade deficit in India expanded to its highest level in 10 months, reaching $24.2 billion in August. This represents an increase from the trade deficit of $20.7 billion recorded in the previous month.

Additionally, the easing inflation in August is also putting pressure on the INR, which came in at 6.83%, compared to 7.44% in the previous month. Additionally, the Core inflation rate stood at 4.9%, aligning with market expectations.

Reserve Bank of India (RBI) Governor Shaktikanta Das has stated that the central bank anticipates inflation to ease starting from September onward. This suggests that the RBI expects a gradual decline in inflationary pressures, which can have implications for its monetary policy decisions.

Moreover, on Friday, Finance Minister Nirmala Sitharaman revealed that India is currently engaged in negotiations with approximately 22 countries to facilitate bilateral trade transactions in the Indian Rupee. This initiative suggests India's efforts to strengthen trade ties and potentially reduce reliance on foreign currencies in international trade.

On the other hand, the US Dollar (USD) is facing downward pressure, likely a result of the downbeat consumer sentiment data from the United States (US) released on Friday. The preliminary US Michigan Consumer Sentiment Index registered a reading of 67.7, reflecting a decrease from the previous figure of 69.5. This reading also came in below the anticipated figure of 69.1 for the month of September.

The US Dollar Index (DXY), which assesses the performance of the US Dollar against six other major currencies, concluded its ninth week with an overall gain of 0.26%. Nevertheless, the spot price is hovering around 105.30.

The US Treasury yields have fully reversed their intraday gains, exerting downward pressure on the Greenback. The yield on the US 10-year bond has declined to 4.32%, down by 0.25% at the time of writing.

In the past week, significant economic data from the US has consistently highlighted robust economic conditions. These strong economic indicators provide additional support for the Fed's intention to potentially implement another interest rate hike by the conclusion of 2023.

The Consumer Price Index (CPI), a key measure of inflation, exceeded expectations. Additionally, Retail Sales for the same month and Jobless Claims for the second week of September both yielded positive outcomes, signifying a positive economic outlook for the US.

Market participants will closely watch the Fed’s interest rate decisions scheduled for Wednesday. The Fed is expected to maintain its current interest rates without changes. Furthermore, market participants will carefully scrutinize the central bank's communications, seeking any clues or insights regarding the possible future direction of interest rates.

USD/INR: additional important levels

Overview
Today last price 83.0942
Today Daily Change -0.0062
Today Daily Change % -0.01
Today daily open 83.1004
 
Trends
Daily SMA20 82.8964
Daily SMA50 82.6685
Daily SMA100 82.4632
Daily SMA200 82.3479
 
Levels
Previous Daily High 83.2242
Previous Daily Low 82.99
Previous Weekly High 83.2896
Previous Weekly Low 82.5035
Previous Monthly High 83.5505
Previous Monthly Low 82.224
Daily Fibonacci 38.2% 83.1347
Daily Fibonacci 61.8% 83.0794
Daily Pivot Point S1 82.9855
Daily Pivot Point S2 82.8707
Daily Pivot Point S3 82.7514
Daily Pivot Point R1 83.2197
Daily Pivot Point R2 83.339
Daily Pivot Point R3 83.4538

 

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

AUD/USD holds gains near 0.6600 as RBA Governor Bullock speaks

AUD/USD holds gains near 0.6600 as RBA Governor Bullock speaks

AUD/USD clings to gains near 0.6600 early Tuesday. The Aussie fails to find any inspiration, as the RBA holds the key interest rate at 4.35%. Strong China's Caixin Services PMI data supports the Aussie amid a steady US Dollar and a tepid risk tone. RBA Governor Bullock's presser gets underway. 

AUD/USD News
USD/JPY: Rebound remains capped below 152.50 amid cautious mood

USD/JPY: Rebound remains capped below 152.50 amid cautious mood

USD/JPY consolidates the bounce below 152.50 in Asian trading on Tuesday, tracking the US Dollar price action. The pair's upside remains capped by strong Japanese PMI data and a cautious market mood. Traders remain wary as Americans head to polls this Tuesday. 

USD/JPY News
Gold traders appear non-committal on the US election day

Gold traders appear non-committal on the US election day

Gold price is miring in five-day lows near $2,730 in Asian trading on Tuesday, lacking a clear direction. Traders remain wary and refrain from placing fresh bets on Gold price on the US presidential election day.  

Gold News
Trump-inspired memecoin MAGA shows bullish on-chain metrics ahead of US elections

Trump-inspired memecoin MAGA shows bullish on-chain metrics ahead of US elections

MAGA trades slightly down to around $3.4 on Tuesday after rallying more than 20% since Sunday. The former President Donald Trump-based memecoin is poised for further gains as daily active addresses and network growth metrics rise, signaling increased network usage and adoption.

Read more
US presidential election outcome: What could it mean for the US Dollar?

US presidential election outcome: What could it mean for the US Dollar? Premium

The US Dollar has regained lost momentum against its six major rivals at the beginning of the final quarter of 2024, as tensions mount ahead of the highly anticipated United States Presidential election due on November 5.

Read more
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures