The USD/INR exchange rate settled 23 paise lower at 70.67 to the US dollar on Wednesday and it was seen trading around 70.50 low before the London opening session. Indian Rupee gains against the greenback were capped due to the “Buy the rumor, sell the news” market phenomenon.

According to the market expectation the US Federal Reserve cuts its benchmark interest rate by 25 basis points to a range of 1.5% to 1.75%. Since the beginning of 2019 the Fed has lowered interest rate for the third time and the process was portrayed by the Fed Chairman Jerome Powell as a “mid-cycle adjustment.”

Along with the easing monetary policy the Fed also indicates that it may pause its easing efforts raising the bar higher for future rate cuts.

Globally, the US dollar has responded negatively after the Fed interest rate decision. The dollar index, which gauges the greenback’s strength against a basket of major currencies closed the previous trading day lower at 97.45

During the Asia trading hours, the NIFTY 50 was quoted around 11927 after it gapped higher at the opening price. The data showed that foreign institutional investors are net buyers of domestic equities. The Indian 10-year government bond yield has registered a 1.44% surge being quoted around 6.778.

The US President Donald Trump planned to sign a partial trade deal with the Chinese President Xi Jinping next month in Chile. But, he partial trade deal between the two most powerful economies in the world US and China is put in jeopardy due to the Asia-Pacific Economic Cooperation summit in Santiago being cancelled. A White House spokesman told the press that the Trump administration still seeks to finalize the phase-one deal.


USD/INR Technical Pattern

On the technical level, the USD/INR exchange rate continues to remain trapped in a consolidation. Not even the US Fed delivering on its rate cut was able to generate enough volatility to motivate a breakout. Investors should keep their eyes on key support level 70.350, while on the upside; traders should eye the key resistance level established around the 71.000 level. is a news site only and not a currency trading platform. is a site operated by TransferWise Inc. (“We”, “Us”), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on do not represent our views.