- Indian retail sector suffers Rs 9 lakh crore hit over past 2 months
- Indian Rupee (INR) rises as broad mood improves amid global easing of lockdown measures
- US consumer confidence expected to increase to 88 vs 86.9 in April.
- 11:30 UTC, USD/INR is trading -0.33% at 75.64 >> Real time exchange rate
The Indian Rupee is trending higher versus the US Dollar for a third straight session on Tuesday. The Rupee settled +0.1% versus the greenback on Monday at 75.88.
At 11:30 UTC, USD/INR is trading -0.33% at 75.64. This is towards the lower end of the daily traded range of 75.61 – 75.88 as risk sentiment improves. However, the pair continues to trade within a familiar range, which it has traded since the coronavirus outbreak.
The Indian Rupee is ignoring coronavirus woes at home, instead rising inline with risk sentiment amid hopes of a global economic restart.
The number of coronavirus cases in India jumped by 6,977 on Monday according to government data, taking the total number of cases to 138,845. This puts India within the top 10 nations worst hit by coronavirus. The death toll has risen to 4000. Fears are mounting that these numbers will grow rapidly as migrant workers return from big cities to their villages where medical care is basic at best.
Data from the Confederation of All India Traders (CAIT) revealed that India’s retail trade lost business to the tune of Rs 9 lakh crore over the past 2 months, owing to the nationwide lockdown. The Confederation said that domestic trade is facing its worst period.
However, the Rupee is focusing on the improved mood in the broader market surrounding the global economic reopening. Global economies are easing lockdown measures boosting hopes of an economic restart. The UK, California Japan and Saudi Arabia all announced measures to ease the virus led stipulations.
Adding to the brightening mood was upbeat new surrounding coronavirus vaccines. Novavax has become the latest US biotechnology firm to announce that it will move its vaccine to human trials with results expected in July.
As risk sentiment increases investors are more drawn towards riskier investments and currencies, such as the Indian Rupee, and away from the safe haven US Dollar.
Looking ahead investors will now turn their attention to US consumer sentiment data. Analyst are expecting morale to creep higher to 88 in May, up from 86.9 in April.