The Indian rupee traded down on Wednesday as the broad strength of the dollar and the weak China data dampened the region's economic outlook while rising crude oil increased dollar demand of importers.
USD/INR rose to 62.51 from 62.27 at previous close, reversing the downside of over the past two days. The move distanced the pair further off the one-month low of 61.95 touched earlier this month.
The upward bias in the pair since late January seems to be intact now and the immediate resistance is seen at 62.67 and the 62.90. The resistance at 63.12 will be more important, as a move beyond that will take it to its highest since early January.
The pair will then aim 63.63 and then 63.79 ahead of a retest of the December high of 64.09.
On the downside, 61.95 has become the nearest support and then comes 61.60. The pair will have a much more important support at 61.26, which was the January low.
A drop below 61.60 will make the next level easier and any thing below the January low will be its lowest since late October last year. The levels to watch after that will be 60.80 and then 60.18.
Brent crude for spot delivery jumped to $60.96 on Wednesday, its highest since 6 March, from the previous close of $60.16. The commodity had a 3.9% jump on Tuesday also helped by the weakness in the US dollar after the retail sales data disappointment.
The USD index has rebounded to 99.36 from the previous close of 98.75, further distancing from Tuesday's intra-day low of 98.37, which was a three-day low. The index had ended the previous session 0.77% down, falling off the near-one-month high of 99.99 touched on Monday.
China's GDP growth matched market expectations on the year-on-year measure but the quarterly growth trailed and also the industrial output and retail sales data, increasing the safe haven flows to the dollar on Wednesday. Data on Wednesday helped safe haven flows to dollar and weakened Asian assets broadly.