usd-inr-bank-notes
  • Indian Rupee (INR) moves lower as covid numbers surge and US – Chinese tensions remain elevated
  • Losses limited by falling oil prices, rallying equities
  • US Dollar (USD) trades lower versus major peers amid rising risk sentiment
  • US jobless claims numbers up next, 1.3 million initial jobless claims forecast

The US Dollar Indian Dollar exchange rate is extending gains for a third consecutive day. The pair settled on Wednesday +0.2% at 74.94. At 10:15 UTC, USD/INR trades back over 75.00, +0.15% at 75.05.

Check real time USD to INR exchange rate

The number of coronavirus is India unnerving investors. 6 months after the first infection was reported, the number of cases now stands at 742,400 with 26,000 new daily cases recorded on Thursday. This is a record number, just weeks after the country eased rigid lockdown measures. With a population of 1.4 billion fears are rising that India will be the next hot spot.

US – China tensions are also dragging on the Rupee amid reports that the White House is considering banning Tik Tok and other Chinese social media apps to punish China over coronavirus.

Oil prices are proving to be supportive of the Indian Rupee. Crude oil trades -0.3% after Energy Information Association (EIA) data showed that US crude inventories swelled by 5.7 million barrels in the week to 3rd July. The Sensex is also trading over 1.2% higher.

The safe haven US Dollar is broadly out of favour versus its major peers as investors reain upbeat about the prospects of the US economic recovery, despite new daily coronavirus cases reaching almost 60,000 a day.

Vaccine news is keeping sentiment buoyed as Emergent BioSolutions becomes the latest company to move forward with its vaccine testing. Reports that Trump is also preparing for all schools to re-open in September has added to the upbeat mood.

Attention will now turn towards US jobless claims data which will provide clues as to how the US labour market is faring. Analysts are expecting initial jobless claims to increase by 1.3 million, down from 1.4 million last week. Continuing claims are expected to slowly edge lower to 18.9 million, down from 19.3 million. A lower number could boost risk sentiment further and drag the US Dollar lower.

 

Currencylive.com is a news site only and not a currency trading platform. Currencylive.com is a site operated by Wise US Inc ("We", "Us"), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of Wise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on currencylive.com do not represent our views.
Disclaimer: Currencylive.com is a news site only and not a currency trading platform. Read more...
Show less

RELATED ARTICLESMORE FROM AUTHOR