USD/INR attracts some buyers, RBI keeps repo rate unchanged
Indian rupee (INR) loses its recovery instigation
on Friday amid persistent US Bone (USD) demand, which is most presumably from
importers. The Reserve Bank of India (RBI) governor Shaktikanta Das said the
central bank’s Monetary Policy Committee (MPC) decided by a 5 to 1 maturity to
maintain the repo rate steady at the current position of 6.5%. The note remains
firm following the RBI rate decision. Meanwhile, the rising geopolitical pressures
in the Middle East and the upsurge in oil painting ply some pressure on the INR
and lift the safe-haven currency might be limited by the RBI’s two-way FX
intervention to keep the INR stable. Moving on, the US employment data will be due
subsequently on Friday, including Nonfarm Payrolls (NFP), Severance
Rate, and Average Hourly Earnings for March. The US NFP figure is estimated to
see 200K jobs added to the US frugality in March.
Daily Digest Market Movers: Indian Rupee
remains weakened amid geopolitical pressures
RBI governor Shaktikanta Das said
robust growth prospects allow the MPC enough room to concentrate on affectation
and allow it to move towards the target of 4%. Monetary policy must continue to
be laboriously disinflationary. RBI retained affectation cast at 4.5% for the
current fiscal time, lower than 5.4% in the last fiscal. RBI’s Das stressed the
need to be cautious about food prices, considering the anticipation of rising
temperatures between April and June. He added that the impact of a reduction in
energy prices on affectation will consolidate in the coming months. The Indian
central bank estimated the real growth rate for the fiscal time 2024-25 at 7%.
The CIA on Thursday reportedly advised Israel attacked Tehran’s consulate in
Syria, killing two Iranian military leaders, per the Express. India’s HSBC
Service PMI rose to 61.2 in March from 60.6 in February, better than request prospects.
Technical analysis: USD/INR prospects remain
positive in the longer term
The Indian Rupee trades weaker on the
day. The bullish station of USD/INR remains unchanged in the long term since
the brace has risen above a nearly four-month-old descending trend channel
since March 22. In the short term, USD/INR is above the key 100-day Exponential
Moving Average (EMA) on the quotidian chart with the 14-day Relative Strength Indicator
(RSI) holding in bullish home around 65.0. This suggests that support zones are
more likely to hold than to break. A break past a high of April 3 at 83.55
could pave the way to the next resistance at an each-time high of 83.70 en route
to the 84.00 psychological round mark. On the west side, the first strike target
will crop near a high of March 21 at 83.20. The implicit support position is
located at the 83.00-83.50 zone (round mark, the 100-day EMA). A breach of this
position could see a drop to a low of March 14 at 82.80.
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