The USD/Inr rebound

• Indian rupee is trading in negative lands in the Asian session on Monday.
• Indian economic slowdown, foreign external flows and RBI price discounts continue to undermine INR.
• RBI intervention and low crude oil prices may lead to the negative side of the local currency.

The Indian rupee (INR) weakens on Monday, when he won the winning chain for two days. Slow growth in the Indian economy, the continuation of foreign institutional flows (FIIS), and the reduction of the Indian Reserve Bank (RBI) is a decrease in the local currency rate against the US dollar.

However, the intervention of RBI by selling the US dollar may help reduce INR losses. In addition, the decrease in Crude oil prices It is likely to support Indian rupee, because India is the third largest consumer in the world of crude oil. The Indian trade balance will be released later on Monday. On the American front, Federal Reserve (FED) is scheduled to speak Patrick Harker and Michelle Bowman. The US market will be closed on Monday to monitor the President’s Day.

Indian rupee is still fragile amid slow growth, reducing RBI rates

• The wholesale price index in India (WPI) decreased slightly to 2.31 % in January from 2.37 % in December, more soft than the expected 2.50 %.
• “There is unlikely to have a gathering in the local market has continued since Fiis has continued to sell. The decrease in bond returns in dollars and the United States only will turn Fiis into buyers,” said Geojit Financial Services, said:
• US President Donald Trump said last week that Indian Prime Minister Narendra Modi presented talk about tariffs and importing more oil and gas in the United States to reduce the trade deficit between the two countries.
• Retail sales in the United States decreased by 0.9 % in January of the increase of 0.7 % (revised from 0.4 %) in December, according to the American Statistical Office on Friday. This number came weaker than the market expectation of a decrease of 0.1 %.
• Industrial production increased by 0.5 % of MOM in January, compared to 1.0 % (it was revised from 0.9 %) in December, overcoming an estimate of 0.3 %.

The dollar/INR maintains a positive tone, and more aspects are expected in the short term

Indian rupee trading softer per day. Technically, the ups of the dollar pair of the dollar, which features well -backed price, prevails over the 100 -day SIA moving average (EMA) on the daily time frame. However, more monotheism cannot be excluded as the 24 -day relative index hovers around the midfield.

The psychological level is 87.00 as an immediate resistance level for USD/Inr. The continuous gains after the aforementioned level can allow the bulls to set their goals on the following targets at the highest level ever near 88.00, on its way to 88.50.

On the negative side, the initial support level is seen at 86.35, which is the lowest level on February 12. The breach of this level can be sent to 86.14, the lowest level on January 27.