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The safe-haven U.S. dollar remained on the back foot on Wednesday following two days of losses as global financial markets regained a measure of stability on hopes a full-blown banking crisis can be averted.

The dollar index, which tracks the currency against six major peers, was flat in early Asian trading, following drops of about 0.3% in each of the past two sessions.

The weakness comes despite a rise in U.S. Treasury yields, which is also the result of ebbing demand for the safest assets. The yen remained volatile in the run-up to the end of the Japanese fiscal year on Friday.

The dollar jumped 0.51% to 131.59 yen, erasing all of the previous day's 0.5% decline, when it uncharacteristically moved in the opposite direction with long-term U.S. Treasury yields.

The 10-year benchmark U.S. yield pushed 1 basis point higher to a fresh one-week peak at 3.579% in Tokyo trading.

Elsewhere, the Australian dollar slipped 0.18% to $0.66965 after a reading of Australian consumer inflation slowed to an eight-month low, adding to the case for a pause next week in the Reserve Bank's rate hiking campaign.

The U.S. currency has lost ground as investors took solace in First Citizens BancShares' agreement to buy all of failed lender Silicon Valley Bank's deposits and loans, as well as overnight comments by Michael Barr,

the Federal Reserve's vice chairman for supervision, that SVB's problems were due to "terrible" risk management, suggesting it could be an isolated case.

Break below 82.20 in USDINR April Future would result in to fresh break down on the medium term charts. Traders should remain bearish in the pair with 82.70 stoploss

Technical Observations:

Pair has closed at the lowest point of last 10 sessions

USD depreciated by more than 17 paisa against the rupee Trend of the pair is bearish as short term moving average is trading below medium term average

Upward sloping trend line adjoining the previous swing lows on the daily chart

Break below 82.20 would result in to fresh break down Indicators and oscillators have been showing bearish trend for the pair

Resistance for the pair is seen at 82.70 Traders should remain bearish in the pair with 82.70 stoploss

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