Ahead of US CPI: Will USDINR price decline?

March 12, GKFX – The Indian National Rupee (INR) extended its winning streak versus the US dollar into a sixth day today, knocking-off USDINR price to the lowest levels since January, 7th at 69.56. At the press time, the cross managed to bounce-off lows to now trade at 69.62.

The latest leg up in the Indian currency can be mainly attributed to surging foreign investment flows into the Indian stock markets amid increased odds of Prime Minister (PM) Narendra Modi returning to power for the second term, as the nation heads for polls in May.  

Will USDINR price decline last ahead of the US CPI release?

The grind lower in the USDINR pair is also on the back of broad-based US dollar weakness, as markets expect the US CPI figures to support the Fed’s patience stance while reports of fresh US-China trade talks also weighed down on the safe-haven greenback.

“In addition, most exporters bring back their dollars to India towards the end of the fiscal year to settle their annual accounts and repayment of debts which increases inflows,” Reuters noted. As a result, the seasonal “March factor is also a catalyst in the Rupee upsurge.

Looking ahead, markets remain focussed on the USD dynamics heading into the US CPI report for further trading momentum.

USDINR technical outlook

    Today Last Price: 69.626
    Today Daily change %: 0.11%
    Today Daily Open: 69.7215
    Daily SMA20: 70.799
    Daily SMA50: 70.8343
    Daily SMA100: 71.2012
    Daily SMA200: 70.7337
    Previous Daily High: 70.22
    Previous Daily Low: 69.693
    Previous Weekly High: 71.24
    Previous Weekly Low: 69.754
    Previous Monthly High: 71.915
    Previous Monthly Low: 70.105
    Daily Fibonacci 38.2%: 69.8943
    Daily Fibonacci 61.8%: 70.0187
    Daily Pivot Point S1: 69.5363
    Daily Pivot Point S2: 69.3512
    Daily Pivot Point S3: 69.0093
    Daily Pivot Point R1: 70.0633
    Daily Pivot Point R2: 70.4052
    Daily Pivot Point R3: 70.5903


This article was provided by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.

If such information is acted upon by you, then this should be solely at your discretion, and GKFX will not be held accountable in any way.

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