The Indian Rupee (INR) traded stronger on Wednesday, benefiting from lower oil prices and optimism about foreign fund inflows. This came after facing uncertainty surrounding the Indian election. Traders are closely watching the Indian HSBC Services PMI and US ISM Services PMI for May, both due on Wednesday. Despite some selling pressure in the previous session, the INR recovered ground as the decline in crude oil prices and the JPMorgan bond indices inclusion supported it. Investors are keeping an eye on data releases that may impact the USD/INR pair.
Modi’s NDA alliance secured enough seats in the Indian election to form a majority government for the next five years. This sparked uncertainty in the markets, leading to a significant sell-off in Indian equities. However, the INR remained strong amidst the uncertainties. The NSE Nifty 50 and S&P BSE Sensex saw steep declines, but the USD-INR pair is expected to stabilize around current levels in the near term. The final reading of the US ISM Services PMI is estimated to improve in May, potentially impacting the USD/INR pair.
On the technical analysis front, the USD/INR pair jumped above the descending trend channel on the daily chart, signaling a bullish outlook. The pair also crossed back above the key 100-day EMA and the RSI stands in bullish territory. Immediate resistance levels for the pair are at 83.62 and 83.72, with support levels at 83.40 and 83.20. A breach of the support levels could lead to further downside for the pair. The performance of the USD against major currencies was mixed, with the US Dollar being weakest against the Australian Dollar.
The table displaying the percentage change of the US Dollar against major currencies shows a mixed performance. The USD was weakest against the Australian Dollar, with varying changes against other major currencies like the Euro, GBP, CAD, AUD, JPY, NZD, and CHF. The heat map provides a visual representation of the percentage changes of major currencies against each other. This data can be useful for traders and investors looking to gauge the performance of the US Dollar against other currencies and make informed decisions based on these fluctuations. Overall, the Indian Rupee remains resilient amidst market uncertainties and data releases that may impact the currency’s performance in the near term.
