- Indian Rupee (INR) is flat after gains last week
- Beijing boosts risk sentiment
- US Dollar (USD) rose last week against major peers
- Powell hinted at further hikes
The US Dollar Indian Rupee (USD/INR) exchange rate is holding steady after falling across last week. The pair fell -0.68% in the previous week settling on Friday at 82.63. At 11:30 UTC, USD/INR trades -0.00% at 83.63 and trades in a range of 82.51 to 82.66.
The Rupee is holding steady despite a broad upbeat mood in the market. The news flows from China has been mixed. Industrial profits tumbled -15.5% year on year in July, extending the slump for a seventh month amid weak demand.
Meanwhile, authorities in China unveiled more measures to support the faltering economy in an attempt to offset uncertainty in the outlook of the world’s second-largest economy. In addition to other measures, Beijing reduced the levy charged on stock trades.
It appears that Beijing is stepping up efforts to rebuild confidence in the economy and its commitment to support growth. The news boosted demand for riskier assets and currencies such as the Rupee.
The US Dollar is holding steady at the start of the week. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades at -0.02% at the time of writing at 104.07, after six straight weekly gains.
The USD is holding steady after strong gains last week. The greenback received a boost from Federal Reserve Chair Jerome Powell’s speech at Jackson Hole. Powell hinted that the US central bank was prepared to raise interest rates further and keep rates high if it was required to bring interest rates lower.
His comments come ahead of a busy week for the US with the release of US inflation data and US non-farm payroll data. Investors will be watching closely as the Federal Reserve is much more data-dependent than previously.
Inflation ticked higher in July to 3.2% year on year; another increase in consumer prices could raise bets that the Federal Reserve will hike rates again.