- Indian Rupee (INR) pares gains from Monday’s session
- Nifty 50 & Sensex hit new record highs
- US Dollar (USD) edges lower versus major peers
- US Sensate elections in Georgia to drive sentiment
The US Dollar Indian Rupee (USD/INR) exchange rate is pushing higher on Tuesday paring losses from the previous session. The pair settled on Monday -0.07% lower at 73.07. At 14:15 UTC, USD/INR trades +0.26% at 73.24, towards the top end of the daily trading range.
The Indian Rupee was slipping lower despite domestic equities hitting fresh record highs and despite Indian readying to rollout its covid vaccine programme.
Indian is set to begin its covid-19 vaccination programme next week and aims to cover 300 million by July. The rollout comes after India approved two vaccines for emergency use including the Oxford / AstraZeneca vaccine.
Indian shares closed at another record high on Tuesday, lifted by strong gains in mortgage lender HDFC and hopes that the approval of the covid vaccines would lead to a quick economic recovery.
The Nifty ended 0.47% higher at 14,199 whist the benchmark Sensex rallied 0.54% to 48,437.
There is no data due to be released from Inia today, investors will look ahead to the service sector PMI for December which is expected to print at 54, up from 53.7 in November. The level 50 separates expansion from contraction.
Meanwhile, the US Dollar is trading higher versus the Rupee, however it is trending lower versus its major peers. The US Dollar Index, which measures the greenback versus 6 majors trades -0.1%.
Losses in the US Dollar are smaller today than they have been as investors look ahead to the first major risk event for the year – the US Senate runoff in Georgia, which is providing some support to the safe haven greenback.
The vote in Georgia will determine the composition of the US Senate. There are two seats up for grabs. Should the Democrats win both votes then this will mean that the Republicans will lose control of the senate. This will have policy implications and could drag the US Dollar lower.