- Indian Rupee (INR) strengthens snapping a 6 week losing run
- India’s IPO have boosted USD inflows
- US Dollar (USD) falls versus majors in risk on trade
- Fed monetary policy report in focus
The US Dollar Indian Rupee (USD/INR) exchange rate is edging lower for a second straight session on Friday. The pair shed 0.08% on Thursday settling at 74.73. At 16:40 UTC, USD/INR trades -0.3% lower at 74.52.
The Indian Rupee is set to snap a five week losing run this week thanks to US Dollar inflows for initial public offerings. Meanwhile yields on the 10 year bond booked its biggest weekly gain since February on rising inflation fears.
IPO’s for companies such as GR Infra Projects and Clean Science Technology, whose subscriptions closed today have buoyed the Rupee. Attention will now turn to Zomato going public next week. The IPO is expected to value the company at $1.3 billion and could attract plenty of foreign investment attention.
The US Dollar is trading lower across the board. The US Dollar Index, which measures the greenback versus a basket of major currencies trades -0.24% at the time of writing at 92.17 extending losses for a second straight session and moving further away from the paring the recent 3 month high reached earlier this week.
A recovery in risk sentiment is sending the US Dollar lower. Riskier assets such as stocks are once again in favour after yesterday’s steep selloff. Flows into riskier assets are negatively impacting safe havens such as the US Dollar.
The US economic calendar is quiet with no high impacting macro releases. However the Federal Reserve’s Monetary policy report could attract some attention.
This comes after the latest FOMC minutes were released earlier in the week and showed that the Fed is moving towards tightening policy. Yet despite the hawkish tone from the Fed the US Dollar ios still set to book losses across the week.