inr-bank-notes - INR
  • Indian Rupee (INR) eases on risk off trade
  • Falling oil prices bring some relief
  • US Dollar (USD) advances after consumer confidence rebounds
  • US durable goods due

The US Dollar Indian Rupee (USD/INR) exchange rate is heading higher on Wednesday paring losses from the previous session. The pair settled -0.11% higher on Tuesday at 74.93. At 11:00 UTC, USD/INR trades +0.15% at 75.05.

The Rupee trades under pressure in broadly risk off trade. Global equities and riskier currencies such as the Rupee are moving mainly lower as investors look towards safer havens.

Indian equities ended the session lower as easing supply concerns dragged on metal stocks and the banking sector came under pressure after Axis Bank reported disappointing earnings. The Nifty 50 closed 0.3% lower whilst the Sensex fell 0.34%.

Oil prices are offering some support to the Rupee as they fall lower. West Texas Intermediate has fallen 1.2% after industry data revealed that crude stockpiles unexpectedly rose last week. Weaker oil prices bring some relief to Indian which imports over 80% of its crude oil.

The US Dollar is trading higher across the board. The US Dollar Index, which measures the greenback versus a basket of major currencies trades +0.05% at the time of writing at 94.00 extending gains for a third straight session.

The US Dollar is building on gains from the previous session. The US Dollar rallied on Tuesday after data revealed that US consumer confidence unexpectedly rebounded in October after three straight months of declines. The Conference Board reported that its confidence index rose  to 113.8, up from 109.8 in September. The data suggests that US consumer concerns over delta covid and rising prices eased.

Given that the US economy is dependent on consuming spending this figure is often closely watched.

Looking ahead, US durable goods orders will be in focus and are expected to fall after rising for the past 5 months. Expectations are for durable goods to decline by -1.1 in September after rising 1.8% in August.