inr-bank-notes - INR
  • Indian Rupee (INR) rises after 5 sessions of losses
  • Indian inflation cools to 4.5% YoY
  • US Dollar (USD) eases ahead of US CPI data
  • US inflation expected to hold steady at 5.3%

The US Dollar Indian Rupee (USD/INR) exchange rate is edging lower on Wednesday after five straight sessions of gains. The pair settled up +0.13% on Tuesday at 75.48. At 11:00 UTC, USD/INR trades -0.1% at 75.38.

The Rupee is moving tentatively higher, tracing equities northwards. The improved mood in the market is underpinning demand for riskier assets and currencies such as the Rupee.

Indian shares closed at record highs on Wednesday as Tata Motors surged on plans to boost electric vehicle investment and amid news of easing domestic inflation.

The Nifty 50 close just shy of 1% higher at 18,161, whilst the Sensex closed 0.75% higher at 60,737.

India’s retail inflation cooled to a five-month low in September thanks to softer food prices and weak consumer demand. Consumer prices rose 4.35% in September compared to the same month  a year earlier, this was down from 5.3% in August.

The US Dollar is moving lower across the board on Wednesday. The US Dollar Index, which measures the greenback versus a basket of major currencies trades -0.25% at the time of writing at 94.27, although this remains around yearly highs.

The US Dollar is weakening as the mood in the market improved ahead of the release of US CPI inflation data and the minutes from the latest FOMC meeting.

Expectations are for consumer prices to have remained steady at 5.3% year on year in September. Meanwhile, core prices are expected to remain unchanged at 4%. Any number that is great than this could feed expectations that the Federal Reserve will move sooner raising interest rates well before the end of next year.

The data comes after Atlanta Federal President Raphael Bostic suggested on Tuesday that elevated inflation policy may not be as transitory as the Fed had initially anticipated.

The minutes from the September Fed meeting are expected to reflect the mire hawkish message that was portrayed in the Fed announcement.