USD/INR Price News: Indian rupee snaps two-day run-up amid coronavirus woes, trade tension
- USD/INR recovers from the monthly low.
- Downbeat economic forecasts come in handy amid virus outbreak in India.
- US-China jitters renew, major economies in the UK, US and Europe stay ready to re-open.
- Indian Trade Deficit, virus/trade headlines in focus.
USD/INR rises to 75.60, up 0.07% on a day, amid the early Indian session on Monday. Worries over the Indian economic performance during the coronavirus (COVID-19) led lockdown recently fuelled the quote whereas increasing odds of the US-China tussle adds to the recovery momentum.
Having witnessed downbeat forecasts of Indian economic growth by the global rating giants, due to the virus outbreak, Nomura and Goldman Sachs are also up with their warnings for the Asian nation.
While Goldman Sachs cited the government’s fiscal stance to anticipate an 8.0% deficit versus a 3.5% budgeted figure, Nomura forecasts Indian GDP to contract 14.5% during the April-June quarter.
Also, the Confederation of Indian Industry (CII) has called for an immediate economic stimulus package of Rs 15 lakh crore or 7.5 percent of the GDP to tide over the impact of COVID-19 led countrywide lockdown. The lead industry body said the pandemic has severely crippled the national economy. The lockdown which was necessitated to arrest the spread of contagion has come at a huge economic cost.
The broad US dollar weakness, amid US-China trade optimism and downbeat US data, seems to have weighed the pair earlier.
Elsewhere, US President Donald Trump is again back with his allegations over China’s role in the virus outbreak, which in turn dims the recently brightened trade prospects and weigh on the Asian markets as well.
Moving on, Indian Trade Deficit for April, expected $7.5B versus $9.76B prior, is likely immediate catalyst amid a light economic calendar.
Technical analysis
Unless breaking 21-day SMA near 76.05, sellers can remain hopeful to revisit six-week-old support line near 75.10/05. Meanwhile, 76.50 and 74.95 are extra levels to watch.