- Details of $266 billion Indian rescue package fall short of expectations
- US retail sales -12% mom expected
- US consumer confidence expected to hit 10 year low
- At 11:15 UTC, USD/INR +0.3% at 75.71 >> Real time exchange rates
The Indian Rupee is continuing to tumble against the US Dollar on Friday. The Rupee has been falling versus the greenback for three consecutive session. The Rupee settled on Thursday at -0.17% at 75.49 and is on track to lose 0.28% across the week, paring gains from the previous week.
At 11:15 UTC, USD/INR is trading +0.3% at 75.71. This is at the top end of the daily traded range of 75.40 – 75.71 as stimulus package fails to trigger sustained optimism.
The Indian Rupee slipped lower after details of the government’s economic stimulus package failed to impress. Concerns over growing coronavirus cases also weighed on the Indian currency.
Narendra Modi’s government has been unveiling measures as part of the $266 billion fiscal and monetary stimulus package. The package was unveiled earlier in the week and boosted demand for the Rupee. However, details of the package announced over the past two days have underwhelmed, falling short of market expectations.
The number of coronavirus cases have also been steadily increasing in India. The number infected now stands at 81,970.
The US Dollar is trading broadly lower versus its peers, albeit higher versus the Indian Rupee as investors look ahead to the release of US retail sales data and consumer confidence numbers later today.
Analyst are expecting US retail sales to tank -12% in the lockdown month of April. This is below the -8.7% drop recorded in March, as measures to prevent the spread of coronavirus saw demand for goods evaporate overnight. On a positive note, April’s retail sales should be a low point with sales expected to gradually pick up as states keep easing lock down measures.
US consumer confidence will also be closely monitored. The University of Michigan consumer sentiment index is expected to slip to a 10 year low. This index is important because consumers drive the US economy. Consumer confidence levels can help determine whether a return to economic normality will be a long slow slog or relatively quick.
