- Indian Rupee (INR) falls for a third day
- Chinese services PMI was 51.8, down from 54.8
- US Dollar (USD) rises on safe-haven flows
- US factory orders are due
The US Dollar Indian Rupee (USD/INR) exchange rate is rising for a third straight. The pair rose 0.02% in the previous session, settling on Monday at 82.71. At 11:30 UTC, USD/INR trades +0.31% at 82.97 and trades in a range of 82.68 to 82.99.
Riskier assets and currencies, such as the Indian rupee, trade under pressure amid rising concerns over the health of the Chinese economy. the latest Chinese service sector PMI’s show that activity expanded at the slowest pace in eight months in August.
The data suggests that stimulus measures from Beijing so far have failed to meaningfully revive consumption in the world’s second-largest economy.
The Caixin services PMI was 51.8 in August, down from 54.8 in July and missing expectations of 53.6. The level 50 separates expansion from contraction.
The US Dollar is rising across the board. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades +0.36% at the time of writing at 104.61, after small losses in the previous session.
The US dollar is rising as traders come back to their desks following the extended weekend due to Labour Day. The greenback is trading at a three-month high boosted by safe haven trading and as attention turns to Federal Reserve speakers.
The focus this week will be on Federal Reserve officials who are set to speak and could offer further insight on monetary policy before the keenly awaited meeting later in September.
The market is not expecting the Fed to hike rates in September but Fed officials are likely to want to reiterate the message that interest rates will need to stay higher for longer.
On the data front attention will be on US factory orders which are expected to fall 2.5% month on month in June July after rising 2.3% in August.