USD/INR Price News: Advances towards 80.00 amid upbeat DXY, US ISM Services PMI eyed
- USD/INR is aiming to overstep the 79.68-79.97 high volume area as DXY has strengthened.
- The US NFP remained upbeat despite Fed’s caution over softening labor market.
- India has now become the 5th largest world economy after beating the UK economy.
The USD/INR pair is attempting to cross the prior balanced area that is placed in a narrow range of 79.68-79.97 amid a firmer US dollar index (DXY). The major is expected to recapture the psychological resistance of 80.00 as investors are underpinning the DXY amid a risk-off market mood
On a broader context, the DXY is delivering a stellar performance after the release of the upbeat US Nonfarm Payrolls (NFP) data. The US economy created 315k jobs in August vs. the expectation of 300k and the prior release of 526k. It is worth noting that the Federal Reserve (Fed) warned about softening labor data, however, no downbeat signals have been displayed by the labor market yet despite soaring interest rates. So, the DXY is enjoying gains as the US economy is rock-solid.
The US markets will remain closed on Monday on account of Labor Day. Therefore, investors’ entire focus will remain on the US ISM Services PMI data, which will release on Tuesday. The economic data is expected to decline to 54.9 against the prior release of 56.7.
On the Indian rupee front, investors should understand the fact that the Indian rupee is declining seldom in comparison with the mighty DXY. However, it has displayed a stellar performance against other-risk sensitive currencies. The upbeat macro fundamentals are supporting the Indian rupee. Oil prices are declining on expectations of global recession fears. As India is a leading importer of black gold, a significant fall in oil prices is trimming India’s fiscal deficit.
Also, India has become the 5th largest world economy after beating the UK economy. As per the April-June quarter, India’s Gross Domestic Product (GDP) numbers grew by 13.5%.