OctaFX | OctaFX Forex Broker
Open trading account

ANZ: Risks to further INR weakness remain high, USD/INR gaps down to 73.00

In the view of analysts at Australia and New Zealand (ANZ) banking group (ANZ), the Indian rupee remains exposed to further downside risks in the near-term amid persisting coronavirus crisis.

Key quotes

“Expect RBI to keep intervening in order to maintain rupee competitiveness vis-à-vis Chinese yuan.

Fed's emergency 50 bps cut may stem decline in rupee in near-term but if contagion spreads, INR may fall more.

Believe risk to further near-term rupee weakness high, especially given seasonal weakness in Apr-Jun.

INR’s relative resilience has given way due to heightened global market volatility, more virus cases in India.”

USD/INR drops to test 73.00

The rupee bulls were rescued by the emergency Fed rate cut overnight that sent the US dollar broadly lower to a new-month low of 97.00. The collapse in the US Treasury yields as investors ran for cover in the US bonds knocked-off the greenback.

In response to the Fed surprise move, the USD/INR opened Wednesday’s trading with a bearish gap of about 23-pips to test the 73.00 support area.

At the press time, the spot trades flat, printing daily lows at 73.03.

Gold Price Analysis: Rejected above $1,650 after biggest single-day gain since June 2016

Gold is currently trading at $1,643 per Oz, having hit a session high of $1,652 in early Asia. The bid tone around the yellow metal has weakened amid
Read more Previous

USD/CAD slips below 1.3350 with eyes on BOC

USD/CAD declines 0.17% to 1.3348 amid the initial trading hours on Wednesday. While increasing odds of the BOC’s rate cut, following the Fed’s shock a
Read more Next
Start livechat