- Indian Rupee (INR) slips in light trade
- Domestic equities traded flat, oil rises
- US Dollar (USD) rises after 3 days of losses
- US durable goods orders mixed
The US Dollar Indian Rupee (USD/INR) exchange rate is trending higher on Wednesday after a flat finish in the previous session. The pair settled approximately unchanged on Tuesday at 74.13. At 14:30 USD/INR trades +0.11% higher at 74.21.
The Rupee trades at the will of the US Dollar in a light session. Domestic equities provided little in the way of direction as the benchmark indices closed the day flat as financials overshadowed falling tech stocks.
Foreign institutional investors were net sellers in the capital markets on Tuesday according to exchange data.
The recent surge in crude oil over the past two days has also weighed on the value of the Rupee. Oil prices have jumped 9% so far this week paring gains from the previous week.
Upbeat covid statistics helped cap losses in the Rupee. Covid deaths in India fell to the lowest level since March 31 as per the latest Indian Health Ministry reports.
The US Dollar is edging higher across the board on Tuesday. The US Dollar Index, which measures the greenback versus a basket of major currencies trades +0.10% at the time of writing at 92.98 snapping a three-day losing streak.
The US Dollar is on the rise once again as investors continue to weigh up the rising number of covid cases and consider the next move by the Federal Reserve.
The US Dollar had come under pressure across the week as investors cooled bets on Federal Reserve Chair Jerome Powel using the Jackson Hole Symposium as a platform to set out a timeline to taper bond purchases. Instead, expectations are moving more towards a November move by the Fed. Goldman Sachs raised its odds for a formal taper announcement in November to 45% from 25%.
US durable goods orders data came in mixed with orders contracting -0.1%, down from 0.8% but ahead of the 0.3% forecast.