- Indian Rupee (INR) slips as covid cases top 60,000
- FDI has be extremely strong YTD
- US Dollar (USD) rises versus majors on economic recovery optimism
- President Biden pledges to accelerate the vaccine programme
The US Dollar Indian Rupee (USD/INR) exchange rate is edging higher on Monday, extending gains from the previous week. The pair advanced +0.3% last week, closing on Friday at 72.61. At 11:30 UTC, USD/INR trades +0.07% at 72.66.
Covid cases in India have reached their highest level since October last year. A total of 68,020 new daily covid cases were reported on Monday, taking the total tally to over 12 million. This was the third consecutive day that cases top 60,000.
India’s worst affected state, Maharashtra, is considering imposing stricter lockdown conditions in order to stem the spread of the virus, as many Indians are yet to be vaccinated.
The Indian domestic equity markets are closed today for a public holiday.
Broadly speaking the Rupee has been well supported over recent months, thanks in part to huge foreign investor in flows. In the current financial year foreign investors have poured $35.22 billion FDI into India.
The US Dollar is trading mildly firmer across the board. The US Dollar Index which measures the greenback versus a basket of 6 majors, trades +0.04% at 92.78 as it continues to hover around 4 month highs.
An accelerating covid vaccination programme is boosting economic recovery optimism, lifting the US Dollar.
Data last week showed that the US labour market is on the right path to recovery. Initial jobless claims fell to the lowest level since the start of the pandemic.
President Biden also pledged to accelerate the US vaccine programme to 200 million doses in his first 100 days in office. The faster the vaccine rollout, the quicker the US economy gets back on its feet.
The US economic calendar is quiet today. However, releases will pick up across the week, ending on Friday with US non-farm payrolls.
