- Indian Finance Ministry says India could be past covid peak
- Slowing infections could boost economic recovery underpinning Indian Rupee (INR)
- US Dollar (USD) trades broadly lower on safe haven outflows
- US SM non-manufacturing data in focus
The US Dollar Indian Rupee (USD/INR) exchange rate is trading steadily at the start of the new week after booking losses in the previous week. The pair settled -0.5% lower last week, closing on Friday at 73.29. At 10:15 UTC, USD/INR trades -0.04% at 73.25.
The Indian Finance Ministry said in its monthly review for September that India could be past the Covid peak and that declining covid numbers could help to fuel and economic recovery. The ministry commented that the economy was normalising with a resurgence in demand evident across many sectors. The ministry also expects the upcoming festive season to boost growth further.
The Ministry added that the pandemic was far from over and sustained spread of the virus still posed a downside risk to near term and medium-term growth.
The report from the ministry comes as India’s coronavirus case tally rose by 74,442 over the past 24 hours to a total of 6.63 million. Meanwhile deaths from Covid rose by 102 to 102,685. India is now the third country, after US A and Brazil to record over 100,000 deaths.
Lat week India continued with its programme reopening the economy. State schools and movie theatres reopened.
The US Dollar is trading broadly lower versus its peers on Monday on safe haven outflows. Owing to an improved mood in the market. News flow surround President Trump’s health has boosted risk on trading. President Trump could be discharged as soon as today from hospital after contracting covid last week.
Addition to the upbeat mood, hopes of additional US stimulus are on the rise after House Speak Nancy Pelosi suggested that progress in negotiations between the Democrats and the Republicans was being made.
Looking ahead investors will turn their attention to US ISM non-manufacturing data. Analysts are expecting the data to show solid growth in the sector of 56.3, just down marginally from 56.9 last month.