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Forex Today: Indian rupee threatens to collapse to record low

Forex Today: Indian rupee threatens to collapse to record low

The Indian rupee, like many Asian currencies, is suffering from long-term weakness, which led it to close at a record low against the US dollar on Friday.

➡️ The Indian rupee is close to a new record low against the US dollar after closing at a record low last Friday. Much will depend on whether the Reserve Bank of India will try to intervene in the market to support the rupee, putting at the center of attention USD/INR currency pair . Breakout traders may be interested in looking for a short trade here, while Indian investors may look to move rupee money into other currencies.

➡️ Yesterday was a dramatic day for American politics, as President Biden, after weeks of speculation following his disastrous debate performance against former President Trump, announced his withdrawal from the November election.. He has endorsed his vice president Kamala Harris. However, the primary elections have already taken place and Biden's strong majority of delegates cannot be automatically handed over to any candidate, raising the prospect of the first contested major party convention in the US since 1968, which ironically also happened to be the Democrats' in Chicago. That convention saw the start of years of misery for the Democratic Party. Former President Obama brazenly refused to endorse Kamala Harris, so it seems he has another candidate in mind, despite still having a kingmaker role in the Democratic Party. Markets have reacted very calmly, with US stock markets slightly higher and the US dollar failing to rise after hitting a key resistance zone. However, these moves are quite normal and could easily have happened without the news. Betting markets suggest that Harris has only a 38% chance of beating President Trump.

➡️ Asian stock markets saw mixed results today, with HSI index Chinese up today, while the Japanese Nikkei 225 Index dropped by more than 1%.

➡️ In the Forex market, since the opening of Tokyo today, the Australian dollar has been the weakest major currency in the Forex market, while the Japanese yen has been the strongest. The US dollar failed to break above the nearby resistance, so it now looks weak and will likely trade lower after failing to move higher. The EUR/USD currency pair looks set to rise on US dollar weakness, so it could be a good currency pair to watch today.

➡️ Bitcoin is falling after hitting a new monthly high right at the key resistance level of 68.474 $.

 

Credit by DailyForex.com

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