- Indian Rupee (INR) edges as stocks hit record highs
- RBI rate decision due on Friday
- US Dollar (USD) rises versus major peers
- US ADP employment & ISM services data due
The US Dollar Indian Rupee (USD/INR) exchange rate is moving lower extending losses from the previous session. The pair settled lower on Tuesday -0.14% at 74.24 on Monday. At 11:00 UTC, USD/INR trades -0.12% lower at 74.16 after touching a low of 74.09 a level last seen on June 22.
The Indian Rupee reached a 6 week high on Wednesday boosted by an upbeat domestic equity market and inflows towards initial public offerings.
The Sensex closed 1% higher, whilst the Nifty 50 closed 0.8% higher. Shares hit a record high for a second day with the Nifty 50 breaking through the psychological 16,000 mark for the first time on Tuesday. Four separate companies opened subscriptions for IPO’s resulting in a flurry of US Dollar inflows.
Investors are remaining cautious with the Reserve Bank of India central bank meeting on Friday.
The US Dollar trading lower versus the Rupee but higher versus its major peers. The US Dollar Index, which measures the greenback versus a basket of major currencies trades +0.06% at 92.06.
The US Dollar trades near recent lows as investors await jobs data for further cues on the interest rate outlook. The US Dollar has traded on the back foot recently following comments by the Federal Reserve that the US economy still has some way to go until the central bank would consider easing stimulus.
Investors will be watching the ADP employment ahead of Friday’s non-farm payroll report. The ADP private payroll report is expected to show 695,000 new private sector jobs were created in July, roughly line with June’s 692,000. A strong reading could bode well for Friday’s closely eyed jobs report.
The US ISM service sector PMI will also be in focus. Activity in the dominant sector is expected to tick higher to 60.4 in July, up from 60.1 in June.