USD/INR registers record top near 77.00 as Indian stocks crash
- USD/INR remains on the front foot for the fourth consecutive day.
- Coronavirus cases in Indian surges to near 400, multiple state governments announced lockdown.
- Indian PM Modi to seek industry body’s feedback on the impact of the deadly virus.
- BSE Sensex down 10%, NIFTY drops more than 12%.
With the recent coronavirus outbreak in India, USD/INR prints yet another record top of 76.90, currently up 0.67% around 76.15, during the pre-European session on Monday. Various state governments started announcing lockdowns following the surge into the virus numbers while the PM will seek industry body’s words as to how it can (and is) affecting the nation.
“As of 6:00 p.m. on Sunday, India had 396 confirmed cases of Covid-19, including seven people who succumbed to the disease. The central government has locked down the 75 districts where coronavirus (COVID-19) cases and deaths have been reported,” said Bloomberg.
Late during the last week, global rating agency S&P cut the nation’s 2020 growth forecast to 5.2% vs. 5.7% predicted earlier.
Also magnifying the risk-off could be the early-Asian trading sentiment due to the US Senate’s failure to pass the Trump administration’s COVID-19 bill. The Asian markets failed to respect the BOJ, RBNZ and Aussie government’s fight against the deadly virus.
While the US 10-year treasury yields register 10 basis points (bps) of loss to 0.828%, Indian equity benchmarks tests the “limit down” as being down more than 10% by the press time.
Moving on, the upcoming G20 finance ministers’ conference call and voting on the US COVID-19 bill will be the key catalysts to follow.
It should also be noted that the Indian PM Narendra Modi will meet the industry body and discuss the impact of the deadly virus today.
Technical Analysis
A daily closing below the year 2018 top surrounding will be the key signal for the bears to enter. Until then, buyers are less likely to forget 80.00 as the target.