- Indian Rupee (INR) rises on reports of medical help
- Domestic stocks rally on strong banks’ earnings
- US Dollar (USD) trades at 8 week low versus major peers
- US looks to durable goods orders
The US Dollar Indian Rupee (USD/INR) exchange rate is heading lower at the start of the week paring gains from the previous week. The pair rose 0.5% last week, settling on Friday at 74.92. At 12:00 UTC, USD/INR trades -0.25% at 74.73.
The Indian Rupee is managing to claw back some ground today despite the desperate covid situation in the country. The number of new daily infections hit yet another record high, over 350,000, as the health system in Indian collapses.
Countries such as the US, Germany and the US are sending medical supplies to India in an attempt to ease the burden. This helping to underpin the Rupee.
Domestic stocks are also on the rise thanks to strong earnings from ICIC Bank. The Sensex has closed over 1% higher.
Lower oil prices are also offering support. West Texas Intermediate trades -1.4% on concerns that rising covid cases in India will hit oil demand.
The US Dollar is falling across the board on Monday. The US Dollar Index, which measures the greenback versus a basket of major currencies trades -0.1% at the time of writing at 90.77 hitting a fresh 8 week low.
The US Dollar trades under pressure amid a broad upbeat mood in the wider financial markets. Optimism surrounding the global economic recovery is dominating as investors look ahead to the Fed rate decision later in the week.
The US central bank is expected to keep monetary policy on hold, particularly after Fed speakers have been calming the markets in recent months over concerns of early tightening by the Fed. The Federal Reserve is, however, expected to acknowledge the US economy’s improving outlook as the vaccine programme ramps up and the economy reopens.
Investors will now look towards the release of US durable goods orders later today. Expectations are for a 2.5% increase month on month, up from -1.2% decline last month.