- USD/INR remains modestly changed as foreign investors marked selling rout in March.
- Indian markets registered the worst yearly performance since 2009.
- Coronavirus cases in India surge to 1,251, death toll above 32.
Despite being choppy inside the 75.30/70 range, currently around 75.55, USD/INR remains on the bulls’ radar during the pre-Europe session on Wednesday. The reason could be traced from the Indian markets’ performance, as well as foreign investment data, by the end of their financial year ending in March quarter.
As per Reuters, “Foreign institutional investors sold nearly $16 billion worth of equity and debt as of Monday, according to depository data. With a near 30% drop in the quarter ended March, India’s main indexes recorded their worst yearly performance since 2009 and the volatility index shot up to levels last seen during the 2008 financial crisis.”
It should also be noted that the 135.20% of fiscal deficit, compared to the government target, as well as rising coronavirus fears also contributed to the pair’s strength.
Elsewhere, global policymakers are flashing signs of the worst to come, due to the virus, while also expecting a fierce decline in the key economic indicators during Q2 2020.
That said, the market’s risk-tone remains heavy with the US 10-year treasury yields extending declines below 0.70% and Indian equity benchmarks marking more than 2.0% losses by the press time.
Given the lack of Indian data, coronavirus headlines can offer immediate direction to the pair ahead of the busy docket in the US.
Technical analysis
The pair’s trading range between 75.30/70 seems to guard the immediate moves within the broad uptrend.
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