USD/INR steps back from intraday top after a two-day downtrend.
Mildly upbeat sentiment weighs on USD before Powell’s testimony.
US-China jitters, covid updates, and second-tier data add filters to the moves.
USD/INR defends the 74.00 thresholds, snapping a two-day pullback from late-April top amid the initial Indian trading session on Tuesday. That said, the Indian rupee (INR) pair is up 0.07% intraday around 74.17 by the press time.
Although risk barometers are mildly positive and exert downside pressure on the US dollar, indirectly favoring the USD/INR bulls, uncertainty over the Fed’s outlook probe the pair buyers after declining for 2 consecutive days.
The Fed policymakers’ ability to convince markets of no immediate risk to the present rates and bond purchases seem to possess dragged the greenback recently. Though, mixed comments from the US bankers keep traders on the sting .
Early in Asia, remarks of the Fed Chairman Jerome Powell crossed wires, via Reuters, suggesting inflation risk as transitory whereas comments from ny Fed President John C. Williams take multiple turns in his latest speech that recently mentioned that Fed is talking about talking tapering. Dallas Fed President Robert Kaplan was on an equivalent line while favoring “taking the foot off the accelerator sooner instead of later.”