- USD/INR takes the bids to refresh weekly top, up for the fourth consecutive day.
- India daily covid infections rise, WTI crude oil pokes 2021 top.
- US Treasury yields refresh multi-day peak, India bond coupons follow the suit.
USD/INR leaps to 74.41, up 0.20% intraday during the fourth consecutive day of an upside momentum amid early Tuesday.
The Indian rupee (INR) pair tracks the US Treasury yields and firmer oil prices to extend the north-run towards the monthly peak.
That said, the US 10-year and 5-year Treasury yields refresh two-year highs while the 2-year bond coupon jumps to the February 2020 levels at the latest. Also portraying the risk-off mood is the S&P 500 Futures drop 0.45% by the press time.
“The yield on the benchmark 6.10% bond maturing in 2031 is likely to trade in the 6.62%-6.66% band today, a trader with a private bank said. The note ended at 96.27 rupees, yielding 6.64%, the highest since Jan. 20, 2020, yesterday. The Indian rupee was at 74.24 per dollar yesterday,” said Reuters.
It’s worth noting that the WTI crude oil prices rise around 1.0% around $85.00 while poking the year 2021 peak, posted in October.
Elsewhere, escalating virus woes in Asia-Pacific also weigh on the INR. While Australia reports the biggest daily death toll due to the covid, China braces for tighter activity controls in Tianjin. Further, Japan’s Tokyo also braces for quasi-emergency together with the other nine prefectures. At home, India reports 682 fresh cases of Omicron versus 466 posted yesterday.
That said, the risk-off mood propels USD/INR prices and the same is likely to keep the pair buyers hopeful ahead of the next week’s Federal Open Market Committee (FOMC) meeting. For today, US NY Empire State Manufacturing Index for January and NAHB Housing Market Index will decorate the calendar.
Technical analysis
A clear upside break of the 200-DMA level of 74.27 directs USD/INR bulls towards the 100-DMA level of 74.56 and then to the monthly peak of 74.68. Alternatively, pullback moves remain elusive until staying beyond 74.27.
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
Editors’ Picks
AUD/USD holds below 0.6750 on US Dollar recovery
The AUD/USD pair edges lower to 0.6745, snapping the four-day winning streak during the early Asian session on Monday. The renewed US Dollar demand amid the cautious mood weighs on the pair.
EUR/USD weakens below 1.0850 as the leftist New Popular Front leads exit poll in French election
The EUR/USD pair trades on a weaker note near 1.0830 on Monday during the early Asian trading hours. The political uncertainty in France after the second voting round of French parliamentary elections on Sunday exerts some selling pressure on the Euro.
Gold edges lower below $2,400, PBoC refrains from gold purchases for second month
Gold price attracts some sellers near $2,385, snapping the three-day winning streak during the early Asian trading hours on Monday. The downtick of the yellow metal is backed by the modest rebound of the Greenback and the Chinese central bank paused Gold buying for the second month.
Ethereum records another day of heavy liquidations as Mt. Gox bearish pressure persists
Ethereum is down nearly 5% on Friday following the Mt. Gox BTC repayment, sparking more than $108 million in ETH liquidations. The repayment's supply strengthened the bearish momentum on Bitcoin, which spiraled into altcoins like ETH.
French election: It’s all over for Marine Le Pen, but the left weighs on the Euro
The deciding vote in the French Parliamentary elections closed this evening, and the exit poll suggests a shock result. The winning party is the left alliance, the popular front, which was pulled together to try and keep Le Pen’s far right National Rally party out of power.