USD/INR: Rupee extends the rebound, 71.00 back on sight

The Indian National Rupee (INR) extended its recovery from weekly lows against the US dollar and went on to hit three-day highs at 71.15 levels. At the press time, USD/INR trades -0.15% at 71.19.

The Rupee advances so far this Wednesday, tracking the rally in its Chinese counterpart, the Yuan, amid increased expectations of the US and China reaching a trade deal this week.

Moreover, the oil-price weakness combined with a broadly softer US dollar, in the wake of US-China trade deal optimism, further collaborated to the upside in the Indian currency.

Meanwhile, the local traders noted that the Rupee strength is on the back of some selling in American currency by banks and exporters. The USD/INR cross reached weekly tops at 71.71 levels after the domestic currency slumped on widening Indian trade deficit.

Looking ahead, the pair will continue to get influenced by the USD dynamics heading into the FOMC minutes release while markets also await the outcome of the US-China trade talks.

USD/INR Technical Levels