The US Dollar has gained ground against Indian Rupee this Wednesday, driven by the clues that the FOMC has left behind about the Dollar, stressing the possibility of a tighter monetary policy in the upcoming meetings. Since April 27th, the dollar lost almost 3.5% against the Rupee and it seems to be ready to recover some of the losses in the next few days. The Indian economy has had some extra hardship in the last weeks due to the explosive number of Covid-19 infections and new variants. This Thursday investors will keep an eye on the Initial Jobless Claims for the Dollar, where a lower-than-expected number could accelerate the initiated-up trend in the USDINR. From a technical point of view, the USDINR could climb until 74.00 as a first target and 75.00 as a final target.
The US Dollar has made a significant up move against the Ringgit this Wednesday after the FOMC Meeting Minutes report, released earlier. For the first time the Fed recognized that the US economy is in rapid improvement and that at some point in the upcoming meetings they will need to start talking about a more tightened monetary policy. As the market had been anticipating, the talk about the monetary policy to restrain inflation started to change slightly and that was the cause for the up move in the USDMYR. The low economic agenda for the Ringgit was also the reason why the news involving the Dollar were the most important drivers this Wednesday.
From a technical point of view and backed by this macro events, the USDMYR could keep its way up and hit the 4.1500 level until Friday.
