• USD/INR is aiming to defend its immediate support of 81.70 as RBI has yet not reached to pivot rate.
• Mounting China-Taiwan tensions have triggered the risk-off market mood.
• Further movement in the USD Index is likely to be guided by the US inflation data.

The USD/INR pair has shown a minor recovery from 81.75 in the Tokyo session. The recovery move in the major is backed by a responsive move in the US Dollar Index (DXY). The USD Index found attention from responsive buyers as China-Taiwan tensions get escalated after the Chinese military surround Taiwan Island with aircraft and ships. Also, the Chinese Defence Ministry is quickly drilling around Taiwan, strengthening the risk-off mood.

S&P500 futures are showing nominal losses after surrendering gains generated in the opening session as investors are getting precautionary ahead of the quarterly earnings season. Also, rising fears of a recession in the United States are impacting equities. The USD Index rebounded firmly to near 102.20 but is struggling in extending recovery further.