USD/INR Price News: Indian rupee flirts with eight-month lows near 75.15 amid covid surge

• USD/INR holds the higher ground amid a relentless surge in covid infections.
• Moody's says the second wave of covid poses a credit-negative threat to India’s economic recovery.
• The spot sets its eyes on August 2020 highs of 75.31.

USD/INR looks to build onto the ongoing rise, eyeing a test of the August 2020 highs at 75.31.

The Indian rupee remains heavily sold-off into the relentless surge in coronavirus infections, as the country battles the second wave of the virus amid risks of fresh lockdowns.

India reported a 161,736 daily rise in coronavirus infections, taking a total to 13.69 million. Deaths rose by 879 as of Tuesday, bringing up the total fatalities to 171, 058.

Meanwhile, Moody’s Investors Service warned that the second wave of covid poses a credit-negative threat to India’s economic recovery.

On the other side of the equation, the renewed strength in the US dollar, amid expectations of higher inflation and faster economic recovery, continues to collaborate with the upbeat tone around the cross.

Markets will continue to keep a close eye on the coronavirus situation in India and the US CPI release for near-term trading opportunities.

USD/INR: Technical levels

The spot looks to retest the eight-month highs at 75.20, in an effort to approach the August highs of 75.31. The next relevant barrier awaits at 75.50 – psychological level. Alternatively, a break below the 75 round figure could bring the focus back on the key support at 74.73/72. The 10-DMA at 0.7403 will act as a strong cushion.

USD/INR: Additional levels