- Indian Rupee (INR) pares yesterday’s losses
- Indian equities hit fresh record high
- US Dollar (USD) eases after recent rally
- US treasury yields stabilize at 1.15%
The US Dollar Indian Rupee (USD/INR) exchange rate is moving lower on Tuesday, paring gains from the previous session. The pair settled +0.17% higher on Monday at 73.45. At 11:15 UTC, USD/INR trades -0.3% at 73.24.
The Indian Rupee is capitalizing on the weaker US Dollar whilst tracing the Indian stock market higher.
Domestic equities closed at a record high again on Tuesday, driven higher by gains in heavyweights Reliance Industries and HDFC Bank as investors shrugged off a warning by the central bank that bad loans were on the rise among the country’s largest lenders.
The central bank’s Financial stability and development council reported that Indian banks’ gross non-performing assets could increase from 7.5% in
The US Dollar, which has been surging higher across recent sessions is seen easing on Tuesday, consolidating recent gains.
The US Dollar Index which measures the greenback against 6 major peers was trading -0.1% lower at the time of writing.
Even though the US Dollar is on the back foot today, the tone surrounding the greenback has been bullish over the last few days. This is on the back of rising expectations of massive fiscal stimulus from Joe Biden when he takes office later this month.
Huge fiscal stimulus could mean that the Federal Reserve could soon start tapering its bond purchases. This, in turn is lifting US treasury bond yields, boosting the greenback.
US President elect Biden takes office on 20th January and has promised trillions in additional covid stimulus measures. As a result, the US treasury yield has pushed above 1% for the first time in 10 months.
There is no high impacting US economic data today. Attention will turn towards US inflation data which is due to be released tomorrow.