indian-rupee-bank-notes - INR
  • Indian Rupee (INR) falls despite domestic equities rising
  • Indian stocks jump after PBoC rate cut
  • US Dollar (USD) eases on recession fears
  • No high impacting data due

The US Dollar Indian Rupee (USD/INR) exchange rate is rising on Friday after losses in the previous session. The pair settled -0.5% lower on Thursday at 77.42. At 10:00 UTC, USD/INR trades +0.17% at 77.55. The pair is set to gain 0.1% across the week, its 6th straight week on gains.

The Indian Rupee is edging lower despite domestic equities jumping. Stocks in India and across Asia rallied following a rate cut by the PBoC. The Chinese central bank cut its 5-year loan lending rate by 15 basis points in a record move.

The additional support given by China to its slowing economy lifted risk sentiment across the region and into Europe.

The Sensex trades 2.5% higher following the announcement whilst the Nifty 50 trades 2.4% higher today. Metal stocks are lifting the indices as metal prices jump on hopes of increased demand from China.

The US Dollar is rising across the board. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades +0.07% at the time of writing at 102.99 after steep losses yesterday. The US dollar index is set to fall by 1.5% across the week after 7 weeks of gains.

The US dollar fell firmly yesterday after weak US economic data raised concerns of a recession in the US. US jobless claims rose for a third straight week and hit a 10-week high, raising concerns that the cost of living crisis is seeping into the jobs market. Initial jobless claims rose to 218k, up from 197k.

Separately the Philadelphia Fed manufacturing index dropped to 2.6, down from 17.6, marking the lowest level since October 2020.

The weak economic data came following earnings data from retailers earlier in the week which had raised fears over high input costs taking their toll on companies bottom line.

Today there is no high impacting US data, instead, the green is edging higher as sentiment remains fragile.