usd-inr-bank-notes
  • Indian Rupee (INR) rises for a 6th straight day
  • Domestic equities rise as risk sentiment improves
  • US Dollar (USD) edges lower as investors seek riskier currencies
  • US jobless claims, PCE index data due

The US Dollar Indian Rupee (USD/INR) exchange rate is moving lower for a sixth straight day. The pair settled -0.33% lower on Wednesday at 75.44. At 10:30 UTC, USD/INR trades -0.26% at 75.24.

The Rupee is rising, tracing domestic equities higher. The Sensex and the Nifty are pushing higher for a third straight day as risk sentiment continues to improve.

A study by London’s Imperial College revealed that there was a reduced likelihood of needing hospitalization with Omicron compared to Delta. This supported evidence from other studies in South Africa and is helping to boost investor confidence that the global economic recovery can withstand Omicron.

The US Dollar is holding steady after falling for three straight sessions. The US Dollar Index, which measures the greenback versus a basket of major currencies trades flat at the time of writing at 96.07.

The US Dollar trades near a weekly grow amid growing optimism over the global economic outlook, despite Omicron cases surging.

Better than expected US economic growth in the third quarter added to the risk on feel in the market. US Q3 GDP was 2.3% at an annualized rate, above the 2.1% estimated in the preliminary reading and comes following 6.4% and 6.7% growth in the first two quarters of the year.

Growth in the third quarter was hampered by rising cases of the Delta variant, in addition to inflation and supply chain issues which meant businesses struggled to provide goods to customers.

Looking ahead there is a lot of economic data for investors to digest today, including jobless claims, durable goods orders, Michigan consumer confidence and PCE Index, the Fed’s preferred gauge of inflation.

PCE Index is expected to rise to 5.6% in November, up from 5%, a 30 year high. Elevated inflation could prompt bets that the Federal Reserve will raise interest rates sooner, lifting the US dollar.