Reserve Bank of India (RBI) sets benchmark rate at 75.5925
USD / INR opened the forex lower at 75.72 and traded in the 75.42-75.74 range with a bearish bias. The pair eventually closed at 75.60 levels. The Reserve Bank of India set the benchmark rate at 75.5925. The USD / INR pair moved lower in forex, driven by a rebound in stocks and persistent selling of US dollars by banks due to corporate inflows. The USD / INR pair saw an open at 75.72 as both domestic and Asian stocks rebounded early in trading after yesterday’s sharp drop.
Reports of a supplementary budget to fund the Japanese government’s economic stimulus package to mitigate the effects of COVID-19, and positive news about the Omicron variant vaccines raised risk sentiment in the stock markets Asian. Moderna Inc said the third dose of its vaccine increased antibody levels against the rapidly spreading Omicron variant, which has boosted confidence that the surge in COVID-19 infections can be contained.
Daily USD / INR Chart
RBI dollar sales above the US $ 76 mark also led exporters to reduce their holdings of USD. This persistent selling of the US dollar led the Indian rupee to break through the key technical level of 75.60, which triggered stop-losses and inflated dollar sales by forex traders. However, the USD / INR pair stabilized near the 75.60 levels as domestic stocks gave up most of the gains. The US dollar was weak against major forex currencies, after the President’s investment bill retreated. On an annualized basis, the premium on the one-year exact period US dollar / Indian rupee contract was 4.61% compared to 4.58% on Monday.
Par Abhishek Goenka, IFA mondial
Christian Borjon, Forex News Editor at FX Street, has been an experienced trader for six years in Forex and CFD commodities. He worked at CITI Banamex (CITI branch in Mexico) as a Forex Market Maker for a year and a half. Christian holds a UA Business Administration degree from C, Mexico. Like many other traders, he started taking a course and learning the hard way. Christian later discovered it and became obsessed with fundamental analysis and macroeconomics, as well as its influence on financial markets.
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