OctaFX | OctaFX Forex Broker
Open trading account

USD/INR jumps back above 74.00 after S&P cuts India’s growth forecast

  • USD/INR bounces-off lows amid Indian growth downgrade.
  • The spot ignores broad-based US dollar correction.
  • Focus on US stimulus package amid coronavirus updates

The Indian rupee fails to sustain the opening gains against the US dollar, as USD/INR jumps back above the 74 handle amid bearish India’s fundamentals, as coronavirus spreads.

The spot hit a low of 73.74 in the opening trades, tracking the weakness in the US dollar across the board. The greenback is on a corrective move lower across its main peers so far this Wednesday, having surged to monthly tops near 99.82 in US last session on increased funding stress.

However, USD/INR managed to find some support at the lower levels, as the Indian rupee lost ground after S&P Global Ratings downgraded India’s 2020 GDP growth estimate to 5.2% vs. 5.7% predicted earlier, as the global economy is entering a recession amid the coronavirus pandemic.

Shaun Roache, Chief Asia-Pacific Economist at S&P Global Ratings, said: “An enormous first-quarter shock in China, shutdowns across the US and Europe, and local virus transmission guarantees a deep recession across Asia-Pacific.”

Moreover, the rebound in oil prices from 49-month lows also adds to the renewed weakness seen in the rupee. Oil prices fell to fresh multi-year low amid intensifying global recession fears and ongoing Saudi-Russia price war.

All eyes remain on the coronavirus-related updates from India and globally for fresh trading impetus, as the US prepares to announce a big and bold economic stimulus to fight the virus outbreak.

USD/INR technical levels to watch


RBNZ’s Orr: Kiwi dollar has been remarkably well behaved

RBNZ’s Orr: Kiwi dollar has been remarkably well behaved more to come ...
Read more Previous

BOJ’s Kuroda: Will ease policy further without hesitation if economy worsens further from coronavirus impact

Further comments flowing in from the Bank of Japan (BOJ) Governor Kuroda, as speaks about the monetary policy, in light of the coronavirus outbreak.
Read more Next
Start livechat