USD/INR finds buyers ahead of 71.00, focus on US NFP
- USD/INR pauses three-day losing streak.
- Bearish bias intact amid increased dollar sales by foreign banks.
- Focus on US jobs data and oil price dynamics for fresh moves.
USD/INR extended its three-day bearish momentum and went on to hit three-week lows at 71.06 before recovering some ground to now trade near 71.20 region, almost unchanged on the day.
The spot came under heavy selling pressure in the opening hours after the foreign banks sold the US dollar heavily while broad-based US dollar consolidation also did little to stem the fall in the prices.
According to a dealer at a private bank, “Dollar flows related to QIP placement of a leading telecom operator, which were there yesterday, could continue today. This is keeping the pair well offered.”
Moreover, the Indian rupee tracked the bullish trend seen in its Asian peers, as US-Iran war risks receded and downed oil prices alongside. Weaker oil prices benefit India, as it is heavily dependent on oil imports to meet its domestic consumption. IEA: India's oil demand growth set to overtake China by mid-2020s
Over the last hours, the bears have taken a breather, as the focus now shifts towards the crucial US Non-Farm Payrolls data, due later on Friday at 1330 GMT, for fresh dollar trades.
USD/INR Technical levels to consider