The Indian Rupee (INR) recovers its recent losses on Thursday due to receiving support from the expectations of foreign inflows. Indian bonds are set to enter the JP Morgan Emerging Market (EM) Bond Index on June 28. Foreign investors have already invested approximately $10 billion into the securities eligible to join JPMorganÂ’s index, according to Business Standard. Meanwhile, Goldman Sachs anticipates at least $30 billion more in inflows in the coming months as IndiaÂ’s weighting on the index steadily rises to 10%.
The US Dollar (USD) loses ground possibly due to tradersÂ’ anticipation of FridayÂ’s Core PCE Price Index inflation, projected to decrease year-over-year to 2.6% from the previous 2.8%. This data is seen as the Federal Reserve’s (Fed) preferred inflation gauge. Market participants are hoping that signs of easing inflation will encourage the Federal Reserve (Fed) to consider rate cuts sooner rather than later.
The USD/INR trades around 83.50 on Thursday. The analysis of the daily chart shows a broadening pattern, indicating increasing volatility. This pattern suggests a potential correction before moving lower. The 14-day Relative Strength Index (RSI) is slightly above the 50 level, and a break below this level could signal a bearish bias.
Immediate support is at the 50-day Exponential Moving Average (EMA) at 83.40. A break below this level could push the USD/INR pair toward the lower boundary of the broadening bottom at around 83.30.
On the upside, resistance is expected at the upper boundary of the broadening formation at 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 Australian Dollar.
 | USD | EUR | GBP | JPY | CAD | AUD | NZD | INR |
---|---|---|---|---|---|---|---|---|
USD | Â | -0.08% | -0.07% | -0.14% | -0.12% | -0.24% | -0.15% | -0.12% |
EUR | 0.08% | Â | 0.00% | -0.07% | -0.06% | -0.16% | -0.10% | -0.02% |
GBP | 0.07% | -0.00% | Â | -0.06% | -0.06% | -0.15% | -0.07% | -0.06% |
JPY | 0.14% | 0.07% | 0.06% | Â | 0.03% | -0.09% | -0.04% | 0.06% |
CAD | 0.12% | 0.06% | 0.06% | -0.03% | Â | -0.13% | -0.04% | 0.01% |
AUD | 0.24% | 0.16% | 0.15% | 0.09% | 0.13% | Â | 0.09% | 0.14% |
NZD | 0.15% | 0.10% | 0.07% | 0.04% | 0.04% | -0.09% | Â | 0.02% |
INR | 0.12% | 0.02% | 0.06% | -0.06% | -0.01% | -0.14% | -0.02% | 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).
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