USD/INR sits at nine-day tops near 71.25 ahead of US data

• USD/INR builds on Thursday’s rally amid firmer US dollar.
• Higher oil prices and India’s fiscal concerns weigh down on rupee.
• Next of relevance remains the US growth and personal spending numbers.

USD/INR extends its recent upbeat momentum, having hit fresh nine-day highs of 71.26 last minutes, mainly driven by the weakness in the Indian rupee.

The rupee remains under pressure amid rising Indian fiscal and growth concerns, as markets still remain wary over the impact of the Good and Services Tax (GST) on the economy while economic slowdown on the dents the investors’ sentiment and hits the foreign fund inflows into the domestic equities.

On the USD-side of the story, the American currency remains broadly supported by increased year-end flows, despite the recent dismal US macro data. Meanwhile, increased dollar purchases from Indian state-run banks also collaborates with the upside in the spot.

The immediate attention now remains on the US Q3 final GDP and Personal Spending data that will have a major bearing on the dollar trades and eventually on USD/INR.  

USD/INR Technical levels to consider