Home Market Spotlight Oil rebounds, but USD/INR slips to 76.00 level

Oil rebounds, but USD/INR slips to 76.00 level

by WOOWinvest
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Oil rebounds, but USD/INR slips to 76.00 level


USD/INR slipped to around 76.00 despite a sharp pullback in oil prices. The dollar is currently holding on to consolidation following the Fed’s policy statement. Foreign institutional investors have returned to Indian markets amid slowing volatility.

USD/INR has fallen sharply from its March 8 high of 77.17, with oil prices up around 9% overnight, but USD/INR remains poised for further losses.

WTI oil prices saw some key buying after hitting a low of $92.37 on Tuesday. Oil prices rose after the International Energy Agency (IEA) said it may halt trading in 3 million barrels a day (bpd) of Russian oil and products starting next month. The reduction in crude supply this time will be much larger than the 1 million barrels per day reduction in crude oil demand expected due to higher fuel prices. Oil prices rose following the statement. Oil prices rose earlier, already pricing in a shortage of crude oil supplies. Therefore, the rise in oil prices may only be a correction, not a reversal. India is a major importer of crude oil and has a negative correlation with oil prices.

OPEC has proposed that OPEC members will use their unused capacity to increase oil production and will close the gap between supply and demand. Therefore, in an environment where other factors are unchanged, oil prices are unlikely to rise further and may fall.

In addition, the return of foreign institutional investors to the Indian market amid muted market volatility is also supporting the Indian rupee. The growing likelihood of a ceasefire between Russia and Ukraine has boosted sentiment, with foreign institutional investors pouring money into Indian stocks.

Meanwhile, the U.S. dollar index is consolidating after falling from Monday’s high of 99.30 as the Fed decision disappointed investors.

USD/INR

Overview Yesterday’s last price 76.0805 Today’s daily change 0.0819 Today’s daily change % 0.11 Today’s opening price 75.9986 Trend daily chart 20SMA 75.8366 Daily chart 50SMA 75.1399 Daily chart 100SMA 75.017 Daily chart 200SMA 74.6341 Level 77.1725 Last week’s low 76.0827 Last month’s high 75.9006 Last month’s low 74.3785 Daily 38.2% retracement 75.9032 Daily 61.8% retracement 75.9934 Daily pivot S1 75.7908 Daily pivot S2 75.5829 Daily pivot Point S3 75.4086 Daily Pivot R1 76.1729 Daily Pivot R2 76.3472 Daily Pivot R3 76.5551

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