USD/INR prints multi-month tops near 74.50
- USD/INR climbed to the 74.50 region in early trade.
- The rupee drops to the lowest level since October 2018.
- The RBI seized control over the Yes Bank on Friday.
The Indian rupee is in free-fall at the end of the week and it has lifted USD/INR to the highest level since October 2018 near the 74.50 area.
USD/INR higher on INR-selling, coronavirus
The Indian currency has been under increasing selling pressure since late February along with mounting concerns over the fast-spreading coronavirus and its potential impact on the domestic (as well as global) economy.
In addition, Friday’s news that the central bank (RBI) seized control over the Yes Bank - the country’s fourth largest private lender - has been also weighing on the rupee and exacerbated the upside in the pair to fresh tops near 74.50 earlier in the session.
Later on Friday, the US Non-farm Payrolls for the month of February are due, with market expectations at around 175K jobs. In the domestic docket, the RBI’s FX Reserves ticked higher to $481.54 billion during last week (from 4476.12 billion).
USD/INR levels to watch
At the moment, the pair is advancing 0.14% at 74.138 and faces the next hurdle at 74.466 (2020 high Mar.6) seconded by 74.528 (all-time high October 9 2018) and then 75.00 (psychological level). On the flip side, a breach of 72.203 (high Jan.8) would expose 71.550 (55-day SMA) and finally 70.788 (200-day SMA).