- Indian Rupee (INR) eases
- Reuters poll sees Indian GDP jumping 20% YoY
- US Dollar (USD) edges higher after 4 straight losing sessions
- US looks to Jackson Hole Symposium, PCE, GDP & jobless claims
The US Dollar Indian Rupee (USD/INR) exchange rate is heading higher on Thursday after booking mild losses in the previous session. The pair settled -0.03% at 74.11. At 11:30 UTC, USD/INR trades +0.12% lower at 74.22.
According to the latest poll by Reuters, Indian economic growth is expected to have reached a record high in the April – June quarter thanks to favorable comparison and a strong rebound in consumer spending.
The poll of 41 economists revealed that the Indian economy grew by 20% in the Quarter through to June after contracting 24.4% in the same quarter a year earlier. Although it is worth noting that forecasts within the poll varied greatly from 10.5% – 31.6% highlighting the level of uncertainty.
The rebound in growth is expected despite Indian being under lockdown restrictions across the quarter as covid deltas variant spread rapidly across the country.
The US Dollar is trading higher across the board on Friday. The US Dollar Index, which measures the greenback versus a basket of major currencies trades +0.05% at the time of writing at 92.87 after four straight days of losses.
The US Dollar is edging a few pips higher but remains near weekly lows as investors look to the Fed’s Jackson Hole symposium for further clues over the timing of the reining in of monetary stimulus.
The US Dollar has traded on the back foot across the week after Dallas Fed President Robert Kaplan, usually a more hawkish policy maker, said that he may need to adjust his views if the latest covid wave materially slows economic growth.
Following his comments bets eased that the Fed would use the Jackson Hole platform for a formal announcement for tapering bond purchases.
Looking ahead US PCE, GDP Q2 and jobless claims are due to be released.