- USD/INR marks mild losses while extending pullback from 76.02.
- Asian markets cheer risk-on sentiment amid hopes of the economic restart.
- India among the 10 worst-hit virus nations as cases jump by 6,977 on Monday.
USD/INR extends the previous day’s losses while declining to 75.67, down 0.28% on a day, amid the pre-European session on Tuesday. Despite a jump in the coronavirus (COVID-19) cases at home, the pair seems to cheer the broad optimism surrounding the global economic reopen that fuelled risk-on sentiment during the Asian session.
Reuters rely on the government data to convey that India on Monday posted its biggest single-day jump in cases of COVID-19, overtaking Iran to become one of the 10 worst-hit nations. The news said “India reported another 6,977 cases, taking its total to 138,845. Total deaths have passed 4,000.”
India’s retail trade, as per Confederation of All India Traders (CAIT), lost business worth Rs 9 lakh crore in the last 60 days, whereas gold imports shrunk for the fifth month in a row.
It’s worth mentioning that the slight easing of lockdown measures India fails to overcome the national policymakers’, be it government or the Reserve Bank of India (RBI), inability to gain praise from the locals.
On the other hand, easing the virus-led lockdowns in Japan, the UK, the US and some parts of Asian joined the news of additional drug trials as cures to the pandemic to propel the risk-on sentiment. Also supporting the upbeat sentiment could be US President Donald Trump’s refrain to speak upon China’s Hong Kong Security bil.
Amid all these catalysts, US 10-year Treasury yields rise to near three basis points to 0.69% and the stock futures also mark a jump to portray the upbeat trade sentiment. Further, India’s BSE SENSEX gain 0.41% to 30,800 by the press time.
Moving on, the return of the full markets may offer a busy session ahead while the US data can also entertain the traders. However, there are no major data from Indian ahead of Friday’s first quarter (Q1) GDP for which Reuters expect the figures to rise at the weakest pace in eight years.
Technical analysis
A two-week-old rising trend line near 75.60 could restrict the pair’s immediate declines, if not then the monthly low near 75.00 might please the bears. On the contrary, a descending trend line from April 28, currently at 75.98, seems to challenge the quote’s pullback moves.
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