- Indian Rupee (INR) steadies after gains last week
- Risk sentiment improves
- US Dollar (USD) rises versus major peers
- US durable goods orders due
The US Dollar Indian Rupee (USD/INR) exchange rate is holding steady at the start of the week after losses in the previous week. The pair fell -0.23% last week settling on Friday at 82.33. At 10:00 UTC, USD/INR trades +0.08% at 82.39 and trades in a range of 82.26 to 82.44.
The Indian rupee is showing resilience against a modestly stronger U.S. dollar at the start of the week. optimism surrounding inflows and an improvement in risk sentiment is keeping the rupee supported.
inflows from likely export are led dollar sales in the final week of the financial year lifting the Rupee, even as other Asian currencies where weaker following disappointing industrial factory profits from China.
Chinese factory profits dropped 22.9% year on year in February, down from -4% in January on soft demand, with a decline in the auto sector a notable drag.
The US Dollar is rising across the board. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades +0.03% at the time of writing at 103.14, after losses across the previous week.
The best dollar was edging higher on Monday after steep losses last week as investors assessed moves made by authorities and regulators in order to calm worries over the global banking system.
The US dollar fell sharply last week despite the Federal Reserve raising interest rates by 25 basis points. Investors are reining in their expectations of further rate hikes instead seeing the banking crisis potentially causing a recession in US economy.
Over the weekend Fed President Neel Kashkari said the recent stress in the banking sector and the possibility of a credit crunch is brought the US closer to recession.
The market is now pricing in around an 80% possibility that the Fed will keep interest rates on hold at the next Fed meeting.
Today the US economic calendar is relatively quiet investors will look ahead to a speech by Fed official Jefferson.