USDINR: Indian Rupee Higher After RBI Cut Rates 25 bps
USDINR trades 0.15% lower at 70.69 close to monthly lows after the Reserve Bank of India cut its benchmark interest rate for Indian Rupee, Repo rate, by 25 basis points, as expected, making it the fifth cut so far this year in an attempt to boost Indias struggling growth. Reserve Bank of India (RBI) also reduced its growth rate projections for the year to 6.1% from 6.9%. USDINR is under selling pressure since Indian government announced a cut to corporate tax rates for domestic companies to 22%.
On the technical analysis side, the momentum is neutral now as the pair breached below the 50-day moving average two days ago. On the downside, first support stands at 70.574 today’s low, while next barrier is at 70.12 the 100-day moving average. Indian Rupee investors holding short positions can sit comfortably as long as the pair trades below the 71 zone. On the upside immediate resistance stands at 70.801 today’s high, while a break above will open the way for a move up to 71.95 the high from September 20th, a convincing close above will attract more bulls in the action and will open the way for a move to yearly highs at 72.428. For those looking to buy the pair, an entry point can be when the pair breaks above the 50-day moving average at 71.095.Download our latest quarterly market outlookfor our longer-term trade ideas.
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