- Indian Rupee (INR) falls to its 7th record low
- MS downwardly revises its Indian GDP forecast
- US Dollar (USD) falls as Fed bets ease
- Reports a slowdown in jobs growth in corporate America
The US Dollar Indian Rupee (USD/INR) exchange rate is falling on Tuesday paring gains from the previous session. The pair settled +0.3% higher on Monday at 79.99 after trading a range of 79.70 to 80.02. At 14:00 UTC, USD/INR trades -0.08% at 79.93.
The Indian Rupee has fallen to a fresh record low versus the dollar as weakness in the equity market and weak sentiment hit demand. This was the seventh straight record low for the Rupee.
Some intervention from the Reserve Bank of India has helped limit further losses.
Separately Morgan Stanley downgrades the Indian economic outlook. It now expects GDP growth of 7.2% this year owing to tighter financial conditions and a slowdown in global economic trade. This is down from 7.6% previously.
The US Dollar is trading lower across the board. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades -0.66% at the time of writing at 106.66 after steep losses yesterday.
The US dollar fell yesterday and is extending those losses today as investors continue to pare back aggressive Fed hike bets. Whilst there is little on the economic calendar to drive the USD, instead, the market is looking to corporate America for clues.
Apple has said that it intends to slow hiring and spending growth next years in some areas of the company to help weather an economic slowdown. The reports come following a warning from Goldman Sachs which said that they too will also look at cutting around 5% of its workforce.
So far the US jobs market has remained resilient despite signs of economic growth slowing in other parts of the economy. However, now it would appear that corporate America is preparing for a sharp slowdown in growth.
The only data released today was housing starts which slipped to 1.559 million down from 1.591 million.
