USDINR Price News: Indian rupee drops back to 82.20 on China concerns, mixed oil prices

• USDINR picks up bids to snap two-day losing streak.
• China’s defense of zero covid policy weighs on market sentiment.
• WTI Crude Oil prices jumped the most in six months before the bulls took a breather around the key resistance.
• Risk-off mood, and fears of high US inflation can keep buyers hopeful.

USDINR prints mild gains around 82.20 as risk-aversion weighs on the Indian rupee (INR) during Monday’s early European session. Also keeping the pair buyers hopeful are the firmer prices of WTI crude oil, as well as mixed concerns over the Fed’s next move.

That said, WTI Crude Oil pares the latest gains around $90.70, mildly offered while poking a three-month-old descending resistance line.

Elsewhere, China’s rejection of the hopes of dumping zero-covid policy joined an uptick in the virus numbers from the dragon nation to offer a negative start to the week. Even so, hopes of an increase in private investments in the world’s second-largest economy joined mixed concerns surrounding the US Federal Reserve’s (Fed) next move to keep the buyers hopeful.

On the same line could be China’s downbeat trade numbers and comments from Barclays suggesting a downward revision to India’s Financial Year 2023 (FY23) Gross Domestic Product (GDP) forecast to 5.1% from earlier expectations of 7.4%. Reuters said that the Reserve Bank of India (RBI) projects GDP growth for 2022-23 at 7%.

At home, India's foreign exchange reserves rose to $531.08 billion in the week through Oct. 28, marking their biggest weekly gain since September 2021, the Reserve Bank of India's (RBI) weekly statistical supplement showed on Friday, per Reuters.

It should be noted that the risk-aversion wave and higher oil prices can keep the USDINR buyers hopeful unless the US Consumer Price Index (CPI) data for October surprises the Fed hawks. “Despite the gain, the rupee closed flat last week. Traders were not very hopeful that Friday's rally would extend this week given the lack of cues, except for the U.S. inflation report that traders say is not expected to surprise much,” said Reuters.

Technical analysis

USDINR bears remain hopeful unless witnessing a daily closing beyond the 21-day EMA hurdle surrounding 82.30.