- Indian Rupee (INR) falls for a third day
- Record planned spending for the coming fiscal year could be reduced
- US Dollar (USD) rises in risk off trade
- US services PMI, jobless claims due
The US Dollar Indian Rupee (USD/INR) exchange rate is moving higher on Thursday for a third straight day. The pair settled +0.1 higher on Wednesday at 74.79. At 11:30 UTC, USD/INR trades +0.13% at 74.89.
The Indian Rupee is heading lower again on Thursday as reports surface that India could reduce its planned borrowing for the coming fiscal year. The Indian government announced planned record spending levels of around 14.95 trillion rupees ($200).
Government sources said that this could be cut by 600 billion rupees as a switch between the government and the central bank carried out in January was not factored into the released budget estimates.
The yield on the 10-year bond had risen further on Wednesday on rising expectations that the Reserve Bank of India could move to hike rates as soon as next month.
The US Dollar is rising across the board. The US Dollar Index, which measures the greenback versus a basket of major currencies trades +0.32% at the time of writing at 96.24 paring losses from the previous session.
The US dollar slipped lower on Wednesday in a broadly upbeat trading session. Strong results from Alphabet and Advanced Micro Devices boosted the stock market and fueled a risk on environment hurting demand for the safe haven US dollar.
The greenback even shrugged off a surprise drop in ADP payrolls. The ADP report revealed that private payrolls dropped by 301,000 in January as Omicron spread and negatively impacted the labour market.
Today the US dollar is rebounding, pushing higher as it benefits from risk aversion in the markets following disappointing numbers from Facebook parent company Meta Platforms.
Looking ahead there is plenty of data to keep US dollar traders entertained with jobless claims expected to fall to 245,000 down from 260,000. US ISM non-manufacturing PMI is expected to show that business activity eased to 59.5 in January, down from 62.
