• USD/INR has slipped near 74.90 as geopolitical tensions ease off.
• The Indian rupee is underpinned against the greenback as the Asian markets rebound.
• The DXY has remained subdued amid a better mood and ahead of Fedspeak.

The USD/INR pair has fallen sharply on Friday as investors cheer the meeting between US Secretary Antony Blinken and Russian Foreign Minister Sergei Lavrov, scheduled for late next week.

The acceptance of a meeting by the US on a stipulation that there is no further Russian invasion of Ukraine, as noted by the US State Department, supports the global markets and turns the sentiment positive. The risk-sensitive Indian rupee has appreciated against the safe-haven greenback.

Meanwhile, the US dollar index (DXY) has remained subdued in Friday's Asian session, in part due to the shift in the market's risk perception, as hopes for diplomacy over the Ukrainian concerns resurface. 

The ongoing geopolitical concerns have also led to diminishing expectations of an aggressive rate hike by the Federal Reserve (Fed), which is due in March, as inflation is not the only factor that the Fed may consider before dictating monetary policy.

It is highly likely that the USD/INR pair will action mainly upon the headlines from the Russia-Ukraine tussle, as the economic calendar has nothing much to offer on Friday.

USD/INR Technical Analysis

On a four-hour chart, USD/INR is trading in a rising channel. The asset has slipped below the lower trendline placed from January 12 low at 73.73, which is indicating weakness going further. The Relative Strength Index (RSI) (14) is on the verge of skidding below 40.00, which may bring some significant offers by the market participants.

USD/INR four-hour chart