USD/INR Price News: Corrects from two-month high near 82.70 as US debt-ceiling talks approach do or die time

• USD/INR has dropped from a two-month high of 82.90 amid a decline in the USD index.
• The headlines of the face-to-face US Biden-McCarthy meeting has improved risk sentiment.
• Fed Kashkari cited that he is interested in supporting Federal Reserve for holding interest rates steady in June.

The USD/INR pair has shown a decent correction from a two-month high of 82.90 in the Asian session. The major has sensed selling pressure as investors have discounted the impact of the overnight decline in the US Dollar Index (DXY).

S&P500 futures have recovered their entire losses posted in the Asian session as investors are confident that the United States economy will not default. US President Joe Biden could exercise his 14^th amendment right if a deal with Republicans fails.

Meanwhile, headlines that US President Joe Biden and House of Representatives Kevin McCarthy will be face-to-face on Monday for further negotiations over the raise of the US debt-ceiling deal will keep global financial markets on edge.

The USD Index is facing pressure as the Federal Reserve (Fed) is widely anticipated to keep interest rates steady in its June monetary policy meeting. Minneapolis Fed Bank President Neel Kashkari cited this weekend that he is interested in supporting Federal Reserve for holding interest rates steady in June monetary policy meeting as the central bank needs time in assessing the effects of past rate hikes and the inflation outlook, as reported by Wall Street Journal (WSJ).

On the Indian Rupee front, the Indian government has ordered to withdraw higher denomination currency by September. The currency note of Rs. 2,000 has been banned, however, the general public has misguided it a demonetization. It won’t have a major impact on the Indian economy as expected.