inr-bank-notes - INR
  • Indian Rupee (INR) hit a record low of 79 on Friday
  • Domestic equities fall, oil rises
  • US Dollar (USD) quiet in holiday-thinned trade
  • FOMC minutes and NFP data later in the week.

The US Dollar Indian Rupee (USD/INR) exchange rate is holding steady at the start of the week after strong gains across the previous week. The pair gained 0.9% last week, settling on Friday at 78.92 after trading a range of 78.19 to 79.13, a record high.  At 11:00 UTC, USD/INR trades +0.01% at 78.91.

The Rupee fell across the previous week as risk aversion dominated, hitting demand for riskier assets and currencies such as the Rupee.

Today the Rupee is languishing around record lows as domestic equities trade lower and oil prices rise. Indian shares are falling as metal stocks tumble on demand worries in China.

The Nifty 50 trades 0.35% lower at 15697 and the Sensex falls by 0.3% to 52,782.

Meanwhile, oil prices rise towards $110 on tight supply concerns as OPEC+ fails to reach its output quota and as Libya sees production falls amid political disruptions in the country.

The US Dollar is holding stead across the board The US Dollar Index, which measures the greenback versus a basket of major currencies, trades +0.03% at the time of writing at 105.11 after steep gains across the previous week.

The US dollar surged across he previous week on hawkish Federal Reserve expectations. The Federal Reserve Chair Jerome Powell pledged to rein in inflation, even if that means pushing the US economy into recession.

Recession fears also dragged on market sentiment boosting safe haven demand for the USD. Manufacturing ISM PMI data showed that growth in the sector fell by more than expected to 53 from 56.1.

Today the USD is expected to trade quietly given the July 4th independence Day public holiday, which means that the US stock markets are closed. Looking ahead this week sees the release of the minutes to the latest FOMC minutes and the closely watched non-farm payroll report on Friday.