- US Dollar (USD) trades broadly weaker versus its peers in quiet trade
- All eyes are on the first Presidential debate Trump vs Biden
- Indian Rupee (INR) treads water amid weak equity markets and falling oil prices
The US Dollar Indian Rupee (USD/INR) exchange rate is holding steady on Tuesday in a muted session. The pair settled on Monday 0.1% higher at 73.75. At 11:15 UTC, USD/INR trades at the same level.
The US Dollar is trading broadly lower versus its major peers although flat versus the Indian Rupee as investors look ahead to tonight’s US Presidential debate between the current US President Donald Trump and former Vice President Joe Biden.
The state of the economy and the handling of coronavirus are expected to be key themes in the debate. Given covid restrictions, this years’ changes to campaigning mean that the markets have seen and heard relatively little from Biden compared to Trump. The debate will be a window for the US public and the markets to learn more about the leading candidate.
Heading into the debate Biden is marginally ahead of Trump. According to opinion poll RealClearPolititcs Biden leads by 7 points over Trump. This means that Biden has approximately a 60% probability of winning the election.
Investors will want to see whether this is still the case in the polls following the debate. A win by Biden is broadly considered as US Dollar negative.
US fiscal stimulus is also a lingering theme for US Dollar traders. Yesterday, Democrat and House Speaker Nancy Pelosi put forward the Democrat’s $2.2 trillion fiscal stimulus package. It remains to be seen whether the Republicans will agree to it.
The Indian Rupee was holding ground versus the US Dollar despite weak domestic equity markets. Falling oil process on the other hand, were offering some support. West Texas Intermediate trades -0.8% lower just above $40 as concerns over future demand amid rising covid cases and restrictions, overshadow optimism surrounding a rescue package in the US .