Today’s Currency Currents | 2nd Aug ’202 min read
USD/INR opened higher as dollar caught a slight bid into the fresh week. Spot USD/INR opened around 74.85 and moved higher in initial trading to climb above 74.90. It is likely to face stiff resistance in the 74.95 (23.6% retracement of the move from 68.8 to 77.0) – 75.00 zone in any attempt of further move higher.
On the 15 min pivot chart, Spot USD/INR opened at 74.85, Pivot Level P, drew support and moved higher to trade currently around 74.91. On the upside, resistances exist at 75.00 and 75.014 (Daily chart Pivot Level). Move lower during the day can draw support at 74.85, 74.75, 74.60.
The Dollar (DXY) caught a bid around 92.72 and moved a bit higher looking for some respite after the continued selling pressure in previous weeks which took it below a key trendline.
Further move lower in the Dollar looks likely, unless price action is able to take it back higher than the above mentioned trendline. A move lower should take it to test support around 91.50 handle, the 50% retracement of up move from 78.62 to 103.83. Continuing weakness in the Dollar can lead to strengthening of the Rupee, barring interventions by the RBI on the buy Dollar side.
On the macro front, global risk sentiments remain cautiously optimistic as evident in today’s Asia trading session. Despite US equity markets climbing back towards the end of trading in Friday, elsewhere sentiment remains more muted over pandemic concerns. Also, the next round of fiscal stimulus bill by the US lawmakers is yet to be concluded which also has dampened sentiments. Markets will be cheered if a sizeable stimulus package to support the economy and unemployed workers through the year is announced this week.