USDINR Jumps on the Reserve Bank of India’s (RBI) 75 Basis-Point Rate Cut

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Written By: Angeline Feliciano
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    Summary:
  • USDINR is trading higher today after the Reserve Bank of India (RBI) slashed rates to help support the economy amid the coronavirus pandemic.

USDINR is trading higher today after the Reserve Bank of India (RBI) slashed rates to help support the economy amid the coronavirus pandemic. As of this writing, the currency pair is up by 1.27%.

From 5.15%, the central bank slashed its repo rate by 4.40%. This is the first time that the RBI reduced interest rates this year after a series of rate cuts which ended in October of last year. Alongside this, the central bank also announced that it would inject $50 billion to the economy. The move follows after the Indian government put the country on a 21-day lockdown as coronavirus cases rise. India currently has 727 confirmed cases with 20 deaths.

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USDINR Outlook

A couple of hours following the announcement, USDINR has risen from an intraday low of 74.21 to a high of 75.96. On the 1-hour time frame, it can be seen that the currency pair is testing resistance at the falling trend line (from connecting the highs of March 19, March 24, and March 26). If buyers are not able to sustain their momentum, USDINR could once again fall to trend line support at 74.60.

On the other hand, a close above this resistance level could mean a potential rally to last week’s highs at 76.40. If resistance at that price does not hold, the next ceiling could be at 77.32 where USDINR peaked on March 19.

Written By: Angeline Feliciano

Angeline Feliciano has been trading Forex for over ten years. She has invaluable experience working in FX education companies like BabyPips.com and Learn to Trade as a trader, currency analyst, trading coach, and presenter. Aside from these roles, she has also created intensive educational content on fundamental analysis which is heavily sought after by retail traders. She has taught hundreds of people how to trade the FX market in the Philippines and in Australia. When she is not trading, you can find her in the gym lifting weights.

Published by
Written By: Angeline Feliciano