- Indian Rupee (INR) rises despite ongoing global economic risks
- RBI warns over developments
- US Dollar (USD) falls despite Fed rate hike
- US jobless claims beat forecasts
The US Dollar Indian Rupee (USD/INR) exchange rate is lower on Thursday for a fourth straight session. The pair settled -0.3% lower on Wednesday at 76.19. At 16:30 UTC, USD/INR trades -0.30% at 75.95.
The Indian Rupee was extending gains despite warnings from the Reserve Bank of India. The RBI confirmed that India’s macroeconomic fundamentals remained strong but the latest developments pose a downside risk for the Indian economy, in terms of the potential spillover effect.
Uncertainty is rising amid the ongoing Russia Ukraine war which is clouding the macroeconomic outlook which brings increased risks for emerging market economies.
So far the RBI has continued its accommodative stance even as inflation has surged higher. The last policy meeting was in February.
The US Dollar is falling across the board. The US Dollar Index, which measures the greenback versus a basket of major currencies trades -0.60% at the time of writing at 97.90 extending the selloff from the previous session.
The US doll fell yesterday despite the US Federal Reserve hiking interest rates. The US central bank raised interest rates by 25 basis points in a move that was widely expected by investors. US Federal Reserve Chair Powell has as good as announced the move to the US Congress at the start of the month.
The Fed also indicated that there will be a further 6 rate hikes across the year. Fed Chair Powell reassured the market that the US economy was strong enough to absorb all the rate hikes that were coming.
Today US dollar is extending yesterday’s move lower, despite upbeat data. US jobless claims show that the number of Americans signing up for unemployment benefit for the first time fell again to 217,000, this was down from 229,000 in the previous week and below forecasts of 220,000. With over 11 million vacancies in the US, demand for workers remains strong.