- Indian Rupee (INR) slips after last week’s gains
- India’s domestic equities remain flat
- US Dollar (USD) falls versus major peers
- US Juneteenth public holiday today
The US Dollar Indian Rupee (USD/INR) exchange rate is rising on Monday after losses in the previous week. The pair dropped -0.2% across last week settling on Friday at 77.93. At 09:30 UTC, USD/INR trades +0.08% at 77.99.
The Indian Rupee is edging lower at the start of the week, despite a broadly upbeat mood in the wide financial market. Stocks in Asia pushed higher and European stock markets are also on the rise.
Indian domestic equities failed to latch onto the risk rally as both the Sensex and Nifty 50 traded flat, after falling some 5% last week. Gains in consumer stocks are offset by losses in metals.
Oil prices are holding steady after dropping almost 10% last week as recession fears hurt the demand outlook, regardless of tight supply.
The US Dollar is falling across the board The US Dollar Index, which measures the greenback versus a basket of major currencies, trades -0.25% lower at the time of writing at 104.43 after gains last week.
The US dollar gained 0.5% last week after the Federal Reserve raised interest rates by 75 basis points, its largest rate hike in 28 years. On Friday, Federal Reserve Chair Jerome Powell reiterated the US central bank’s commitment to lowering inflation, even if it means heading towards a recession. The hawkish central bank stance lifted the USD.
Over the weekend Fed speakers were also hawkish with both Christopher Waller and Bostic sounding hawkish.
Today the US stock market and bond market is closed for a public holiday. However, the FX market remains open and the USD is edging lower as the market mood improves.
There is no high impacting US data due today. Looking out across the week the economic calendar is quiet. US Fed Chair Powell is due to testify before Congress in his bi-annual testimony.
