- USD/INR portrays the broad US dollar strength, fails to extend Friday’s declines.
- The greenback benefits from risk-off, expectations of the Trump administration’s another aid package.
- India eases lockdown in some non-hotspot areas.
While flashing mild gains around 76.55, the USD/INR pair portrays the broad US dollar strength ahead of the European session on Monday.
In doing so, the pair pays a little heed to India’s easing of lockdown restrictions for some non-hotspot areas and that too for select activities/businesses.
The US dollar remains on the front foot after the latest coronavirus (COVID-19) numbers from the US keeps heaving the risks while also dimming prospects of the early economic re-start.
On the other hand, numbers from India, currently around 16,000, also follow the trend as the nation is probably heading into the third stage of the virus outbreak with the wild spread in the national financial capital Mumbai.
It should also be noted that the stock markets in Asia also fail to offer bids despite a rate cut from the People’s Bank of China (PBOC) as well as clues of further aid packages from the US and Japan.
While highlighting the risk aversion, the US 10-year Treasury yields drop three basis points (bps) to 0.63% with the US stock futures also down to the tune of 0.50%. Even so, Indian BSE SENSEX and NIFTY 50 mark gains of less than 0.50% by the press time.
Traders may now keep eyes on the actual stimulus announcements from the US and Japan while also watching over the pandemic headlines for fresh impetus.
Technical analysis
Unless successfully cross 77.00, the pair is likely to keep flashing the record high while sellers stay on the lookout for entry below the three-week-old rising support line, currently near 76.30.
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