- Indian Rupee (INR) snaps two day winning run
- Risk aversion sends Rupee lower
- US Dollar (USD) rises across the board, extending gains
- US retail sales & Fed Powell speech up next
The US Dollar Indian Rupee (USD/INR) exchange rate is trading higher on Tuesday after two straight days of losses. The pair settled -0.01% lower on Monday at 74.16. At 11:00 UTC, USD/INR trades +0.27% lower at 74.36.
Risk off trade is hurting demand for the Indian Rupee whilst boosting flows towards the safe haven US Dollar. The mood in the market is deteriorating. A fresh Chinese tech backlash, concerns over rising COVID cases and the crisis in Afghanistan have hit risk sentiment sending stocks and shares lower and investors in search of safe haven assets.
Whilst stocks in Europe and US futures are heading lower, Indian shares managed to eek out a positive close thanks to a boost in pharmaceuticals.
Elsewhere falling oil prices offer support to the Rupee. Oil prices are heading southwards for the fourth straight session on concerns over future demand as Covid cases rise across Asia.
The US Dollar is trading higher across the board. The US Dollar Index, which measures the greenback versus a basket of major currencies trades +0.13% at 92.75 extending gains from the previous session.
The mood in the market is deteriorating. A fresh Chinese tech backlash, concerns over rising COVID cases and the crisis in Afghanistan have hit risk sentiment sending stocks and shares lower and investors in search of safe haven assets.
Looking ahead US retail sales and a speech by Federal Reserve Chair Jerome Powell are in focus. Retail sales are expected to show a slight decline to in the volume of sales down -0.2% month on month in July after an unexpected rise in June.
Jerome Powell is also due to speak later in the US session. Investors will be watching closely to see if there are any clues over the timing of the tapering of the Fed’s bond buying scheme.