- Indian Rupee (INR) slips despite domestic equities gaining
- Oil prices dived 4%, extending a deep selloff from last week
- US Dollar (USD) extends gains after strong NFP
- US CPI data due Wednesday
The US Dollar Indian Rupee (USD/INR) exchange rate is moving higher paring losses from the previous week. The pair lost -0.13% last week settling on Friday at 74.24. At 16:00 UTC, USD/INR trades +0.11% higher at 74.36.
The Rupee slipped lower despite further advances in the domestic equities market and despite oil prices tanking.
Both the Sensex and the Nifty 50 recorded gains on Monday boosted by banking stocks and technology stocks. The gains came after the benchmark indices rallied 3% last week booking fresh all time highs.
Oil prices plunged on Monday, extending a 7% selloff in the previous week after China imposed travel curbs on 46 cities as COVID cases rose.
The US Dollar is trading higher across the board. The US Dollar Index, which measures the greenback versus a basket of major currencies trades +0.1% at 92.89 adding to gains from the previous week. The US Dollar index posted gains of 0.68% across the previous week.
The US Dollar index climbed higher at the end of last week following stronger than forecast US jobs data. The US non-farm payroll revealed that 943,000 jobs were added in the US in July, well above the 850,000 forecast. The unemployment rate also dropped by more than expected to 5.4%, down from 5.9%.
The upbeat data boosted bets that the US Federal Reserve could look to taper support sooner than expected. With the Jackson Hole Economic Forum later this month investors are pricing in a move by the central banks.
The US Dollar is also finding support from safe haven flows as concerns pick up over the spread of delta covid variant in China and the US.
There is no high impacting US data due to be released. US CPI inflation data on Wednesday is expected to be the highlight of the economic calendar.