• USDINR rises for the fourth consecutive day despite easing from intraday high of late.
  • China-linked fears join a rebound in the US Treasury yields to favor bulls.
  • Sluggish markets and lack of major data/events challenge upside momentum.

USDINR retreats from intraday high but flashes a four-day winning streak around 81.55 during early Thursday. In doing so, the Indian Rupee (INR) pair fails to cheer downbeat oil prices amid the recent rebound in the US Dollar.

That said, US Dollar Index (DXY) snaps a two-day downtrend as it prints mild gains around 106.50 by the press time. In doing so, the greenback’s gauge versus six major currencies traces the recently firmer US Treasury yields. The benchmark US 10-year Treasury yields rose 1.2 basis points (bps) to 3.70% while printing the first positive in four days by the press time.

Elsewhere, looming concerns over China’s economic growth and challenges for Asia also exert downside pressure on the INR. “Calibrating China’s zero-COVID strategy to mitigate the country’s economic impact will be critical to sustain and balance the recovery,” said Gita Gopinath, the first Deputy Managing Director of the International Monetary Fund (IMF), at the Caixin Summit on Thursday.

Additionally, fears of slower growth and recently easy inflation from India, as well as political jitters, keep USDINR buyers hopeful.

It should be noted that the WTI crude oil prices drop 1.0% to $83.80 during a two-day downtrend while S&P 500 Futures lack clear directions. Also, MSCI’s index of Asia-Pacific shares outside Japan drops 1.7% while easing from the two-month high flashed the previous day.

Moving on, risk catalysts may direct the gold price amid a lack of major data events ahead of the US Weekly Jobless Claims and Philadelphia Fed Manufacturing Survey for November.

Technical analysis

USDINR bulls need a daily closing beyond the 50-DMA hurdle of 81.55, as well as a successful break of the 21-DMA resistance of 81.95, to keep the reins.

This article was originally published by Fxstreet.com.Read the original article here.

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