- Indian Rupee (INR) holds steady but set for weekly gains
- Indian equity markets book 7th straight week of gains
- US Dollar (USD) trades flat easing back from earlier gains
- US Congress in focus heading into the weekend
The US Dollar India Rupee (USD/INR) exchange rate is trading flat on Friday after selling off in the previous session. The pair settled -0.15% lower on Thursday at 73.52. At 12:15 UTC, USD/INR trades 1 pip lower at 73.51. The pair is on track to shed 0.3% across the week, its fifth straight week of losses.
The Indian Rupee has been supported by rising risk sentiment across the week. Vaccine optimism, progress with Brexit and hope surrounding a US covid rescue package have lifted risk appetite. As a result, riskier assets such as stocks and emerging market stocks and currencies such as the Indian Rupee have been in favour, at the detriment of the safe haven US Dollar.
Indian equities ended the day mainly flat on Friday, howeber both Indian benchmark indexes posted a weekly gain for the seventh straight week, marking the longest winning streak since April last year.
Indian stock markets have outperformed global peers boosted by record inflows from foreign institutional investors, which under pins the Rupee.
The US Dollar was holding steady across the board. At the time of writing the US Dollar Index traded flat after easing back from earlier gains. The US Dollar continues to hover around 2.5 year lows.
Tensions between the US and China started the greenback off on the front foot, however it soon resumed its downward trend.
US revealed plans to blacklist a number of prominent Chinese companies. With just a month left in office President Trump named 80 companies which have apparent ties to the Chinese military to add to the blacklist. The move initially unnerved investors however, the impact was short lived.
Looking ahead there is no high impacting US data, investors will remain glued to Capitol Hill where Democrat and Republican lawmakers will continue trying to hammer out a deal to keep the US government open and a covid rescue package.