USD/INR Price News: Inside the woods below 83.00 as US Dollar remains sideways

• USD/INR is trading inside the woods but is expected to reach 83.00 sooner.
• A decline in overall economic activities in the US economy might trim inflation expectations further.
• Firmer oil prices are impacting the Indian Rupee, being one of the leading importers of oil.

The USD/INR pair is oscillating in a rangebound territory below 83.00, following the footprints of the US Dollar Index (DXY). The asset is inside the woods from the past two trading sessions but is expected to recapture the critical resistance of 83.00 ahead.

The US Dollar Index (DXY) is attempting to recapture the crucial hurdle of 104.00 as progressive steps from China for the reopening of the economy after a longer follow-up of no-tolerance Covid-19 policy failed to support risk-perceived currencies. S&P500 failed to make progress in the revival move recorded on Friday as faced selling pressure on Tuesday. The 10-year US Treasury yields have sensed marginal correction after reaching to near 3.85%, displaying a risk-off mood in the global market.

Going forward, investors will keep eye on views from think tanks about the decline in the inflation-related indicators in the United States economy. The recent slowdown in demand for Durable Goods and consumption expenditure compelled think tanks to trim the longevity of hawkish monetary policy by the Federal Reserve (Fed). Economists at ING shared an opinion that the recession will accelerate inflation's slide and will allow the Fed to respond with rate cuts before CY2023 is out.

Now, a decline in US International deficit led by a slowdown in overall economic activities is signaling the mounting side-effects of higher interest rates by the Fed.

On the oil front, oil price is struggling to recapture the $80.00 hurdle but is still in a bullish trajectory. The deadly duo of solid oil prices and volatility in the global market are impacting the India Rupee. It is worth noting that India is one of the leading importers of oil and higher oil prices weaken Indian Rupee.