USD/INR pulls back from a six-week high. News of no immediate US-India trade deal fails to get much attention amid coronavirus fears. US PMIs will be the key while headlines concerning the epidemic can keep the driver’s seat.
USD/INR weakens to 71.84 ahead of the European session on Friday. The cross recently surged to the fresh six-week high on news that the US-India Deall is unclear. However, off at the Indian burses due to Maha Shivratri as well as a pullback in the USD seems to favor the pair’s latest weakness. Even so, coronavirus continues to dampen the broad trade sentiment as not only a rise in cases outside Chinese borders but warnings from Japan and Germany threaten the market players. The BOJ Governor and Japanese Finance Minister both sounded a bit worried due to the coronavirus after Japan’s downbeat economic performance off-late. On the other hand, Germany’s monthly Finance Ministry report also cited coronavirus as the risk to global trade.Furthermore, the US issued travel warnings whereas South Korea and Singapore have also shown readiness to counter the contagion after fearsome numbers.