- Indian Rupee (INR) traces equities higher
- Indian tax receipts expected to top budget estimates
- US Dollar (USD) eases rises as consumer confidence rebounds
- US durable goods orders due tomorrow
The US Dollar Indian Rupee (USD/INR) exchange rate is heading higher on Tuesday after three straight days of gain. The pair settled +0.03% higher on Monday at 75.01. At 15:00 UTC, USD/INR trades -0.05% at 74.97.
The Indian Rupee is finding support, tracing domestic equities higher. Indian stocks rise as metal stocks and automakers head higher amid a heavy week for earnings.
Separately encouraging news surrounding tax revenues is also under pinning the Rupee. The Indian government said that it expects tax revenues for the current financial year. This is not only ahead of budget but also beats expectations for the first time in four years, providing further evidence of the economy firing back towards pre-pandemic levels.
Tax revenues were budgeted at $206 billion for the year ending March 31 and have regularly come in under expectations since 2017/18 when the Indian economy slowed even before COVID.
However, more recently retail sales are starting to rebound, and exports have picked up firmly suggesting that the economic rebound could be stronger than initially anticipated.
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 93.85 extending strong gains from the day before.
The US Dollar is edging higher after a surprise jump in US consumer confidence. US consumer morale rose in October after three straight months of declines. The data suggests that concerns over high inflation were being offset by improving job market prospects and could means that economic growth picked up at the start of the fourth quarter.
The conference board said on Tuesday that its consumer confidence index rose to 113.8 this month from 109 in September.
There us no more high impacting data due for release today. Investors will look ahead to Durable goods orders tomorrow.
