USD/INR Remains Tepid Ahead of Michigan Consumer Sentiment

Market Overview

The USD/INR currency pair has been trading in a narrow range ahead of the release of the Michigan Consumer Sentiment Index. The index is a measure of consumer confidence in the U.S. economy. A higher-than-expected reading could boost the U.S. dollar against the Indian rupee. However, a weaker-than-expected reading could weigh on the dollar.

The USD/INR pair is currently trading at 82.75, down 0.1% on the day. The pair has been trading in a range between 82.65 and 82.85 for the past few days.

Technical Analysis

The USD/INR pair is facing resistance at the 82.85 level. A break above this level could send the pair towards the 83.00 level. However, if the pair fails to break above the 82.85 level, it could fall back to the 82.65 level.

Fundamental Analysis

The Reserve Bank of India (RBI) is expected to keep interest rates on hold at its next meeting on October 8. The RBI has been raising interest rates in an effort to curb inflation. However, the central bank is also concerned about slowing economic growth.

The U.S. Federal Reserve is also expected to keep interest rates on hold at its next meeting on September 20-21. The Fed has been raising interest rates in an effort to combat inflation. However, the central bank is also concerned about the impact of higher interest rates on economic growth.

Conclusion

The USD/INR currency pair is likely to remain tepid ahead of the release of the Michigan Consumer Sentiment Index. A higher-than-expected reading could boost the U.S. dollar against the Indian rupee. However, a weaker-than-expected reading could weigh on the dollar.