USD/INR Price News: Indian rupee pulls back from record low as BSE SENSEX rises 1.5% on Facebook deal
- USD/INR steps back from the record top to 76.75.
- BSE SENSEX rise 1.75% as Facebook buys a 9.99% stake in India’s Reliance Jio for $5.7 billion.
- Oil debacle continues to dampen the risk-tone sentiment, US re-open, $484 billion aid package offers a breathing space.
- Eyes on another economic package as PM Modi takes stock of virus updates.
USD/INR slips from the all-time top of 77.0105, to currently down 0.31% on a day to 76.73, amid the initial Indian session on Wednesday. While the broad risk-off, mainly due to the oil’s south-run, propelled the quote to the record high during early Asia, the recent news concerning Facebook-Reliance Jio deal seems to have triggered the pullback.
Facebook buys 9.99% shares of Mukesh Ambani led Reliance Jio for $5.7 billion. The news propelled the Indian stock markets with the benchmark BSE SENSEX gaining over 1.5% to 31,100 by the press time.
The moves could also be traced from expectations of another aid package from Indian policymakers as Prime Minister Narendra Modi arranges a cabinet meeting to check on the coronavirus (COVID-19) developments.
The country’s pandemic death toll surges past-640 with over 19,000 active cases. The government has already eased lockdown restrictions starting from April 20, despite extending the economic close to May 05, whereas symbolic protests by doctors seem to have gained the headlines off-late.
On a broader scale, US President Trump cheered re-opening the economy with the Senate’s passage of $484 billion package. However, failure of his championed drug and a broad decline in oil prices keep the risk-tone under pressure.
While portraying the same, US 10-year Treasury yields drop two basis points (bps) to 0.55% whereas stocks in China, Japan and most Asia-Pacific nations keep flashing the red.
Given the lack of major data/events on the economic calendar, the pair traders will keep eyes on the Indian government announcements, as well as news to placate oil traders and combat virus fear, for near-term direction.
Technical analysis
While a monthly support line near 76.50 limits the pair’s immediate downside, buyers will look for a clear break above 77.00 before taking fresh entries.