USD/INR Price News: Indian rupee pares heavy losses around 76.50 as crude oil retreats

• USD/INR consolidates the biggest daily jump in a fortnight.
• WTI crude oil prices ease around 11-day top amid risk-off mood, USD rebound.
• Upside momentum likely to remain intact as Indian economy faces the heat of rising prices, China fears.
• US data, Biden’s talks with NATO allies will be crucial for fresh impulse.

USD/INR remains pressured around an intraday low of 76.46 during the initial hour of the Indian trading session on Thursday.

The rupee (INR) pair rose the most in two weeks the previous day as the US dollar tracked firmer Treasury yields. Also favoring the USD/INR bulls were firmer crude oil prices.

That said, the WTI crude oil renews intraday low to $112.65 by the press time, down 0.73% on the day as downbeat market sentiment underpins the US dollar’s gains, which in turn tests energy bulls. Also likely to have helped USD/INR sellers is the latest pause in the exodus of foreign investments in India.

Even so, fears of an escalation in the Ukraine-Russia crisis and likely hardships for the Indian economy, due to higher prices and its burden on private consumption that contributes nearly 60% to GDP.

Amid these plays, the US 10-year Treasury yields rise 1.5 basis points (bps) near 2.33% at the latest. It should be noted that the benchmark bond coupons rallied to the three-year high before reversing from 2.417% the previous day. The softer yields fail to tame the S& 500 Futuresbut Nikkei 225 drops more than 1.25% daily loss by the press time.

Moving on, US preliminary PMIs for March and Durable Goods Orders for February will decorate the calendar while US President Biden’s meeting with the North Atlantic Treaty Organization (NATO) allies in Europe will be crucial as well.

Technical analysis

Unless declining below the 21-DMA and previous resistance line from March 08, respectively around 76.15 and 76.00, USD/INR stays on the way to the latest swing top surrounding 76.80.