USD/INR Price News: Indian rupee steadies around 79.70 amid firmer oil, softer USD

• USD/INR holds lower ground after refreshing eight-day low the previous day.
• US dollar tracks downbeat yields as weak US data underpins fears of recession.
• Mixed sentiment in Asia-Pacific, lack of major data/events restrict immediate moves.
• US Consumer Confidence can entertain traders ahead of Fed.

USD/INR remains pressured around a one-week low, marked the previous day, as traders seek fresh clues during Tuesday’s Asian session. In doing so, the Indian rupee (INR) pair cheers the softer US dollar, amid cautious optimism, around 79.70 at the latest.

US Dollar Index (DXY) drops for the fourth consecutive day, down 0.18% intraday around 106.30 by the press time. It’s worth noting that the US 10-year Treasury yields, down 3.5 basis points near 2.78%, reversing the previous day’s rebound to 2.81%. Further, Monday’s Chicago Fed National Activity Index for June and Dallas Fed Manufacturing Index for July, preceded by Friday’s US S&P Global PMIs for July, also strengthened economic fears surrounding the US. Recently, global rating giant Moody’s downgraded growth forecasts for Eurozone and the US but failed to lift the US dollar.

On the other hand, WTI crude oil prices rise for the second consecutive day, up 1.75% intraday around 97.50 by the press time. While the US dollar weakness can justify the rebound in the oil prices, Russia’s restrictive gas supplies to Europe and OPEC leaders’ refrain to respect the US push for more output appear to underpin the black gold’s recent upside.

At home, mixed sentiment and downbeat performance of technology shares appear to keep the USD/INR prices tensed of late. It’s worth noting that Walmart’s slashing of profit forecasts and fears of lesser consumer spending also contributes to the risk-off mood amid a sluggish session and restrict the pair’s moves.

While portraying the mood, the S&P 500 Futures fail to trace Wall Street as it retreats to 3,955, down 0.25% intraday.

Moving on, chatters surrounding recession and inflation will be crucial for the USD/INR traders to watch ahead of Wednesday’s Federal Open Market Committee (FOMC) meeting. That said, US CB Consumer Confidence for July, prior 98.7, appears to be the key for traders to watch. Also important will be the US New Home Sales for June, Richmond Fed Manufacturing Index for July and House Price Index data for May.

Technical analysis

USD/INR traders seek a clear break of the 79.60-90 area for conviction. That said, oscillators seem to fade bullish bias of late.