USD/INR stays above 76.00 as India jostles with coronavirus, US announced stimulus
- USD/INR alternates losses with the gains following the latest risk-on.
- The US policymakers finally agreed over the $2 trillion aid package.
- India under three-week complete lockdown amid coronavirus outbreak, stimulus on the way.
While cheering the latest agreement over the US aid package, also taking clues from the domestic lockdown, USD/INR seesaws near 76.30, up 0.45%, during the early Indian session on Wednesday.
The Indian PM Narendra Modi announced a complete lockdown for 21-days to turn down the risk of being 21-year behind due to the coronavirus (COVID-19) outbreak. The nation earlier witnessed short-term curfews as test measures.
While the Indian Finance Minister Nirmala Sitharaman has already extended the tax-saving deadline from March 31 to June 30, the diplomat also promised a comprehensive economic package to combat the virus effect.
On the other hand, the US policymakers finally agreed on the $2 trillion aid package that was taking rounds in news during the recent days. Following the announcement, the market’s risk-tone got a boost. While portraying the same, the US 10-year treasury yields rise four basis points (bps) to 0.86% whereas most stocks in Asia remain positive.
Though, Indian equity benchmarks, namely the BSE SENSEX and NIFTY 50, register near 1.0% losses by the press time.
Traders now look forward to any signals concerning the Indian stimulus ahead of taking clues from the US Durable Goods Orders and Senate voting on the much-awaited COVID-19 Bill.
Technical Analysis
A month-old support line from February 27, currently at 75.53, limits the near-term declines of the pair. Alternatively, 78.00 acts as a key resistance.