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  • USD/INR fails once again at 71.30, three-week tops.
  • Rupee underpinned by trimmed US dollar sales by private banks.
  • Choppy trading to persist amid holiday-thinned trading.

USD/INR is seen fluctuating between gains and losses so far this Tuesday, in light of no fresh triggers and broadly subdued US dollar price action amid X-mas Eve light trading.

The spot moved away from three-week tops of 71.305 reached on Monday, as the US dollar remains weighed down by the downside surprise delivered in the US Durable Good Orders. Meanwhile, US-China trade deal concerns continue to pressure the US Treasury yields, adding to the downbeat tone seen around the buck.

The Indian rupee, on the other hand, derives support from trimmed US dollar sales private banks. A dealer with a state-run bank said: “Some private banks are on dollar sales likely for their own books, but trading activity is largely subdued tracking Asian peers in this holiday-truncated week.”

The USD/INR bulls also lack vigor amid lack of fresh catalysts as most traders are away on account of X-mas Eve festivities. The spot will remain at the mercy of the USD dynamics amid slowing volumes and irregular volatility.

USD/INR Technical levels to consider