USDINR retreat from all-time highs amid the coronavirus optimism around the globe. The strong rally in Indian equities today also support the Indian Rupee. The Indian rupee hit an all-time low against the greenback as the Indian currency remained under pressure amid a significant rise in coronavirus cases the last week in the country and weak domestic equities. The Indian services PMI came in at 49.3 disappointed investors and points to a sharp contraction in the Indian economy. The government extended the lockdown until April 15 in an attempt to contain the coronavirus outbreak. Foreign investors pulled out $14 billion from the country last month compared to $7.2 billion back in 2013 amid fears that the lockdown will last more than expected.
RBI stepped in to support the Indian rupee via the offer of a long term forex swaps providing USD to local companies. US dollar is under selling pressure today as the risk appetite returns to market after the positive news about the coronavirus outbreak.
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USDINR Technical Analysis
On the technical analysis side, the outlook is negative as the pair trades above all major moving averages. The risk for bulls is that the pair have reached the overbought level and a sharp correction can’t be ruled out.
On the downside, first support for the pair stands at 75.26 today’s low. Next support might provide the low from April 1, trading session at 74.74. A credible break below 74.74 might pave the way for a move down to 74.44 the low from March 31.
On the other side, first resistance for USDINR stands at 75.981 today’s top. If USDINR breaks above that level, the next hurdle stands at 76.47 the high from yesterday’s trading session. Next target for bulls to the upside will be the high from March 24 resistance at 76.612.
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