GBP/EUR: Pound Heads Higher As EU To Mull Over Brexit Extension
  • Indian Rupee (INR) rises on risk-on trade
  • Indian equities continue to rally
  • US Dollar (USD) falls on cooling Fed bets
  • US Fed Waller to speak later

The US Dollar Indian Rupee (USD/INR) exchange rate is falling on Monday, extending losses from the previous week. The pair lost -0.33% last week, settling on Friday at 77.59. At 0:00 UTC, USD/INR trades -0.05% at 75.55.

The Indian Rupee is rising in risk-on trade. The market mood continues to improve on the prospect of easing lockdown restrictions in China, with Shanghai set to end its two-month lockdown on Wednesday and hopes that Beijing will follow soon after.

Indian domestic equities are also on the rise, up over 1%on Monday thanks to a rally I tech stocks. The Nifty 50 trades 1.6% higher at the time of writing and the Sensex 1.6%, both indices also added 1% on Friday. Tech stocks have taken a beating over recent weeks amid fears over inflation and higher interest rates. However, those concerns are now showing signs of easing.

The US Dollar is falling across the board. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades -0.3% at the time of writing at 101.25, extending losses from last week.

The USD fell at the end of last week after data showed that US inflation was slowing. The personal consumption expenditure (PCE) data showed a slowdown to 6.3% Year on year in May, down from 6.6%. Core PCE which is the Federal Reserve’s preferred measure of inflation slowed to 4.9%, down from 5.2%.

The data comes after the consumer price index slowed to 8.3% year on year in April, down from 8.5%.

Slowing inflation has prompted investors to rein in aggressive Fed hike bets, a move which was also supported by Atlanta Fed President Bostic who said that the Fed could pause its rate hike cycle after a 50 basis point hike in June and another in July if that is what data required.

Today the US is on a public holiday, so holiday-thinned trading is expected. There is no high impacting US data. Fed Waller is due to speak later.