- Indian Rupee (INR) edges lower as covid cases surge
- RBI Chief sees India’s economic recovery continuing
- US Dollar (USD) supported by upbeat economic outlook from Powell & Yellen
- US jobless claims, GDP & core PCE in focus.
The US Dollar Indian Rupee (USD/INR) exchange rate is edging higher on Thursday for a third straight session. The pair advanced +0.06% in the previous session settling at 72.59. At 11:30 UTC, USD/INR trades +0.06% at 72.63.
The Rupee is tracing domestic equities lower amid rising concerns over the surge in covid cases. Indian shares fell over 1% as investors rushed to sell out amid concerns over tighter lockdown restriction impacting the economic rebound.
Indian recorded 53,476 new daily infections on Thursday, its highest level for 5 months. At the same time the Chief of the Reserve Bank of India attempted to calm nerves saying that India’s revival in economic activity is set to continue regardless of the recent surge in covid infecttions.
The price of oil is sliding lower in the wake of two very volatile sessions. West Texas Intermediate trades -2% as growing concerns over future demand amid rising covid cases, overshadows concerns surrounding the blockage of oil movement through the Suez Canal.
The US Dollar is trading mildly higher across the board. The US Dollar Index which measures the greenback versus a basket of 6 majors, trades +0.07% at 92.60 at the time of writing, as it continues to trade around 4 month highs.
Us Federal Reserve Chair Jerome Powell & US Treasury Secretary Janet Yellen gave an upbeat assessment of the US economic recovery in their second day of testifying before Congress. This helped lift treasury yields boosting the greenback.
Investors will now turn their attention to a flurry of US data due for release, including US jobless claims, Q4 GDP and core PCE which is the Fed’s preferred inflation gauge.
Analysts are expecting jobless claims to fall to 730,000, down from 770,000 the last week. This would be just above the pandemic low of 711,000.
Meanwhile the Q4 GDP final reading is expected to confirm 4.1% annualized growth.