USD/INR Price News: Consolidates above 82.80 as US debt-ceiling issues delay further, oil struggles

• USD/INR is oscillating in a narrow range above 82.80 as investors are confused due to a further delay in US debt-ceiling issues.
• The USD Index is approaching the 103.50 resistance as Fed policymakers are confident of more rate hikes this year.
• The Indian economy is going through the buzz of a ban on Rs. 2000 notes by the Reserve Bank of India.

The USD/INR pair is displaying a back-and-forth action above 82.80 in the Asian session. The major is struggling to find direction as the US Dollar Index (DXY) remained choppy overnight amid a lack of clarity over the US debt-ceiling issues.

S&P500 futures have trimmed some losses generated in early Tokyo, however, the risk impulse is still solid. The US Dollar Index has turned sideways after a solid recovery from 103.16. The USD Index is approaching the 103.50 resistance as Federal Reserve (Fed) policymakers are confident that the policy-tightening spell by the central bank could pause in June but a finale is far from over.

St. Louis Fed Bank President James Bullard said on Monday that the Fed wants to fight inflation amid a strong labor market. He further added that the policy rate will have to go higher this year, perhaps by 50 basis points (bps). No doubt, the US labor market is showing resilience as job postings have not dropped dramatically despite higher interest rates and tight credit conditions by the US regional banks.

The USD Index is also showing resilience despite a further delay in US debt-ceiling issues. Monday’s meeting remained undecided as US President Joe Biden called the proposal from Republicans ‘extreme’. House of Representatives Kevin McCarthy denied the approval of higher taxes for the Wealthy community. While Democrats are not ready to cut budget spending wrath by 8%.

Meanwhile, the Indian economy is going through the buzz of a ban on Rs. 2000 notes by the Reserve Bank of India (RBI). The deadline for returning bigger-denomination notes is scheduled for September end.

Upside in the oil price seems restricted around $72.50 as investors are worried that US Treasury could announce a default by June 01 amid the absence of a raise in the US borrowing limit. It is worth noting that India is one of the leading importers of oil in the world and the India Rupee is silent due to sideways oil price.