- Indian Rupee (INR) rises lifted by IPO inflows
- Falling oil prices supports Rupee
- US Dollar (USD) moves higher versus majors as the Fed meeting kicks off
- The Fed is broadly expected to start tapering bond purchases
The US Dollar Indian Rupee (USD/INR) exchange rate is heading lower on Tuesday the previous session. The pair settled -0.37% lower on Thursday at 74.78. At 14:00 UTC, USD/INR trades -0.25% at 74.64.
The Indian Rupee pushed higher supported by IPO related inflows and despite a lackluster trend in the domestic equity market. The Sensex fell 1.18% on Tuesday whilst the Nifty 50 declined 0.23%
Separately oil prices eased underpinning the Rupee. West Texas Intermediate trades -0.5% lower at the time of writing. Oil prices eased despite an OPEC report highlighting that the group of oil producers were failing to reach the increase of output permitted. This report comes ahead of the OPEC+ meeting on Thursday.
Whilst there was no high impacting Indian economic data released today investors will look ahead to the release of the Markit services and composite PMI for October due tomorrow. The data will provide further clues as to how the sector is holding up as the economy re-opens
The US Dollar is trading lower versus the Rupee. However, the greenback is trading higher versus its major peers. The US Dollar Index, which measures the greenback versus a basket of major currencies trades +0.1% at the time of writing at 93.97 paring some losses from the previous session.
The US Dollar eased lower in the previous session following mixed manufacturing data and comments by treasury secretary Janet Yellen, who pushed back against inflation concerns.
Today, the U.S Dollar is edging higher as the US Federal Reserve begin its two day monetary policy meeting. The Fed are expected to announce tomorrow the start of the tapering of its monthly bond buying programme. Investors will be listening keenly for any comments regarding inflation or the timing surrounding a possible interest rate rise