The Indian Rupee (INR) extends its gains due to expected foreign inflows as Indian bonds join the JP Morgan Emerging Market (EM) Bond Index on Friday. Foreign investors have already invested approximately $10 billion into the securities eligible to join JPMorgan’s index, according to Business Standard. Meanwhile, Goldman Sachs anticipates at least $30 billion more in inflows in the coming months as India’s weighting on the index steadily rises to 10%.
Indian Rupee traders would likely observe key economic data on Friday, including the Federal Fiscal Deficit for May and FX Reserves for the week ending June 17.
On the US DollarÂ’s (USD) front, Core PCE Price Index inflation is projected to decrease YoY to 2.6% from the previous 2.8%. This data is seen as the Federal Reserve’s (Fed) preferred inflation gauge.
The USD/INR trades around 83.40 on Friday. The analysis of the daily chart shows a broadening pattern, suggesting a potential correction before a downward movement. The 14-day Relative Strength Index (RSI) is below the 50 level, indicating a bearish bias.
The USD/INR pair tests the immediate support at the 50-day Exponential Moving Average (EMA) of 83.40. A break below this level could potentially strengthen the bearish bias, which could lead the pair toward the lower boundary of the broadening pattern, around the 83.30 level.
Resistance on the upside is anticipated near the upper boundary of the broadening formation, around 83.70, followed by the psychological level of 84.00.
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the weakest against the Indian Rupee.
 | USD | EUR | GBP | JPY | CAD | AUD | NZD | INR |
---|---|---|---|---|---|---|---|---|
USD | Â | 0.07% | 0.00% | 0.00% | 0.06% | 0.03% | 0.17% | -0.09% |
EUR | -0.07% | Â | -0.07% | -0.07% | 0.01% | -0.04% | 0.09% | -0.17% |
GBP | -0.00% | 0.07% | Â | -0.02% | 0.04% | 0.02% | 0.16% | -0.12% |
JPY | 0.00% | 0.07% | 0.02% | Â | 0.03% | 0.03% | 0.15% | -0.08% |
CAD | -0.06% | -0.01% | -0.04% | -0.03% | Â | -0.03% | 0.11% | -0.13% |
AUD | -0.03% | 0.04% | -0.02% | -0.03% | 0.03% | Â | 0.13% | -0.12% |
NZD | -0.17% | -0.09% | -0.16% | -0.15% | -0.11% | -0.13% | Â | -0.27% |
INR | 0.09% | 0.17% | 0.12% | 0.08% | 0.13% | 0.12% | 0.27% | Â |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
The Core Personal Consumption Expenditures (PCE), released by the US Bureau of Economic Analysis on a monthly basis, measures the changes in the prices of goods and services purchased by consumers in the United States (US). The PCE Price Index is also the Federal ReserveÂ’s (Fed) preferred gauge of inflation. The MoM figure compares the prices of goods in the reference month to the previous month.The core reading excludes the so-called more volatile food and energy components to give a more accurate measurement of price pressures. Generally, a high reading is bullish for the US Dollar (USD), while a low reading is bearish.
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