USD/INR extends the bounce to fresh eight-day highs near 71.20
- USD/INR jumps despite broad USD weakness on Trump’s impeachment.
- Rupee loses amid cautious domestic equities and firmer oil prices.
- Awaits US macro data, trade and political developments for fresh directives.
Following a temporary pullback on Wednesday, USD/INR picked up strength once again and rallied to the highest levels in eight days of 71.21.
The pair opened a bit weaker and hit a daily low of 70.87 before the bulls jumped in and took the rate back above the 71 handle. At the press time, the cross trades at 71.15, up +0.22%.
The Indian benchmarks, BSE Sensex and NSE index trade with caution after the market mood was hit by renewed US political concerns that added to already lingering trade deal uncertainty. US President Trump became the third US President to be impeached after the House of Representatives voted to ousted him early Thursday.
Trump’s impeachment stoked US political worries and weighed on the US dollar broadly. Despite dollar weakness, the sentiment around the domestic stocks played a key role in the latest drop seen in the Indian rupee.
Meanwhile, the Indian currency also failed to benefit from positive US-China trade developments after China announced new tariffs exclusion for US imports. Markets now await the Indian and US economic releases for fresh trading incentives while trade and US political headlines will continue to have a significant impact on the pair.
USD/INR Technical levels to consider