• Indian Rupee (INR) edges higher as Evergrande risks ease
  • Evergrande stake sale plans boost sentiment
  • US Dollar (USD) steadies as treasury yields ease
  • Fed Chair Powell is due to testify again today

The US Dollar Indian Rupee (USD/INR) exchange rate is heading lower on Wednesday, snapping a three-day winning streak. The pair settled +0.5% on Tuesday at 74.19. At 10:30 UTC, USD/INR trades -0.05% lower 74.15.

The Indian Rupee is attempting to claw back some ground after plunging to a monthly low in the previous session. Risk off trading hit demand for riskier assets such as equities and the Rupee.

Today the mood in the market has improved slightly. Evergrande, the second largest property developer in China which is close to defaulting has been partly to blame for the hit to risk appetite in recent session. However, Evergrande’s share price picked up today as stake sale plans helped ease concerns, lifting risk sentiment.

There is no high impacting Indian data due today. Investors will look out to manufacturing PMI data tomorrow.

The US Dollar is trading lower versus the Rupee but is gaining ground versus its major peers. The US Dollar Index, which measures the greenback versus a basket of major currencies trades +0.03% at the time of writing at 93.79 after booking gains of 0.35% on Tuesday.

The US Dollar has stabilized after strong gains in the previous session. The greenback trades around yearly highs on the back of elevated US treasury yields, expectations that the Fed will soon start tapering bond purchases and on safe haven flows amid growth concerns.

Today US treasury yields are easing back below 1.53% but the greenback is underpinned by the 25 basis points rise in yields across the past 5 sessions. This move has come following last week’s Federal Reserve meeting where the Fed suggested that it would start tapering bond purchases by the end of the year.

Fed Chair Powell also pointed to upside risks to inflation in his testimony to the Senate Banking Committee yesterday. Jerome Powell will testify again today.

 

Currencylive.com is a news site only and not a currency trading platform. Currencylive.com is a site operated by Wise US Inc ("We", "Us"), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of Wise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on currencylive.com do not represent our views.
Disclaimer: Currencylive.com is a news site only and not a currency trading platform. Read more...
Show less

RELATED ARTICLESMORE FROM AUTHOR