- Rupee opened in green for the fifth straight session.
- Dollar weakness, increased foreign fund inflows weigh on USD/INR.
- Key Indian/ US macro news, Fed and trade news to dominate this week.
USD/INR lost the 71 handle for the first time in five-week on Tuesday, mainly driven by relentless buying seen around the Indian rupee while some fresh US dollar weakness over the last hour also added to the bearish bias in the spot.
The rupee extends Monday’s rally and now hovers near multi-week tops of 70.855 against the US currency. The spot remains exposed to further downside, as increased foreign fund inflows will continue to support the demand for the domestic currency.
Meanwhile, a broadly weaker US dollar amid looming US-China trade worries and weaker Treasury yields, in the run-up to the FOMC monetary policy tomorrow Wednesday, also keeps USD/INR under pressure. The USD index is seen on a steady decline so far this Tuesday, now testing daily lows of 97.59.
The rupee also tracks the Chinese yuan and Indonesian rupiah higher, as the focus now remains on the two-day FOMC meeting starting later on Tuesday and second-tier Indian macro news.
USD/INR Technical levels to consider
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