USD/INR Price News: Indian rupee regains below 75.00 amid covid-led risk aversion

USD/INR extends pullback from weekly top, refreshes intraday low of late.
India covid recovery rate risen 97.19% amid record infections, death tolls elsewhere in Asia-Pacific.
Fitch cuts India growth forecast, India–UK negotiations on free trade agreement will begin during late 2021.
Risk-off mood backs US dollar amid a light calendar, virus updates are the key.

Anil Panchal FXStreet

USD/INR takes offers around 74.63, down 0.15% intraday, amid the initial Indian session trading on Friday. In doing so, the Indian rupee (INR) pair drops for the second consecutive day after refreshing the weekly high amid the coronavirus (COVID-19)-led risk-off mood.

While the market sentiment remains sluggish amid fears of the covid resurgence and variants, India registers a jump in the recovery rate to 97.19% on Friday, per the latest report from Health Ministry. Reuters conveys additional details as, “India reports 44,459 daily rise in recoveries; total recoveries at 29.89 million, active cases at 458,727.”

Read: Coronavirus Update: South Korea marks record infections, NSW hints another week-long lockdown

Also favoring the USD/INR prices could be the headlines suggesting optimism over the India-UK free trade agreement talks. The latest update from NewsRise shared by Reuters hints at the late 2021 discussion over the much-awaited trade talks.

On the negative side, global rating giant Fitch cut, per Financial Express, India’s growth forecast to 10 per cent for the current fiscal, from 12.8 percent estimated earlier, due to slowing recovery post-second wave of COVID-19, and said rapid vaccination could support a sustainable revival in business and consumer confidence.

Amid these plays, the US dollar index (DXY) picks up bids while tracking the US Treasury yields rebound.

Looking forward, USD/INR traders need to pay close attention to the covid headlines as the nation’s surprise positive on the covid, when the majority of the neighbours suffer, could derail soon, posing downside risk to the pair.

Technical analysis

While mid-April lows highlight 74.55 as the key immediate support, an ascending support line from May 31 also challenges the USD/INR sellers around 74.48. Meanwhile, up-moves can keep eyeing the 75.00 threshold.

Additional important levels

Overview
Today last price	74.6549
Today Daily Change	-0.0929
Today Daily Change %	-0.12%
Today daily open	74.7478

Trends
Daily SMA20	74.1749
Daily SMA50	73.5715
Daily SMA100	73.5477
Daily SMA200	73.5332

Levels
Previous Daily High	74.8614
Previous Daily Low	74.665
Previous Weekly High	74.8958
Previous Weekly Low	74.14
Previous Monthly High	74.5135
Previous Monthly Low	72.4854
Daily Fibonacci 38.2%	74.74
Daily Fibonacci 61.8%	74.7864
Daily Pivot Point S1	74.6547
Daily Pivot Point S2	74.5617
Daily Pivot Point S3	74.4583
Daily Pivot Point R1	74.8511
Daily Pivot Point R2	74.9545
Daily Pivot Point R3	75.0475

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

EUR/USD climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Changing the game: International implications of recent tariff developments

The Supreme Court ruling on International Emergency Economic Powers Act (IEEPA) tariffs provides limited relief for the rest of the world, with weighted average tariff rates modestly lower.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.