- Indian Rupee (INR) rises despite oil gaining
- Sensex & Nifty 50 rise
- US Dollar (USD) falls despite consumer spending rising
- US fell into recession
The US Dollar Indian Rupee (USD/INR) exchange rate is falling on Friday for a second straight session. The pair ended settled on Thursday -0.27% at 79.62 after trading a range 79.58 to 79.85. At 16:00 UTC, USD/INR trades -0.35% at 79.34.
The Rupee is capitalizing on the weaker USD as it continues to rise off all time lows, as the equity markets gain and despite rising oil prices.
Oil prices have risen across the week on tight supply and as investors look ahead to next week’s OPEC meeting where the group of oil producers is not expected to increase output. WTI oil is rising 3.8% today and is set to gain 5.5% across the week.
On the data from infrastructure, output rose 12.7% year on year in June. For the April to June period, it rose 13.7%.
The US Dollar is falling across the board. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades -0.37% at the time of writing at 105.396 after falling for the past three days. The pair trades down 0.5% across the week, its second straight week of declines.
The US dollar is falling despite consumer spending beating forecasts in June. Data showed that US consumer spending rose by more than expected in June as Americans paid more for goods and services, with inflation rising.
Consumer spending jumped 1.1% last month ahead of forecasts of 0.9% and data for May was revised higher showing 0.3%, up from 0.2%.
The data comes after data showed that the US economy fell into a technical recession in the second quarter of the year, contracting by -0.9% annually, down from -1.6% in the first three months of the year.
Earlier this week the Federal Reserve raised interest rates by 75 basis points. However, it refused to give forward guidance given uncertainties surrounding the economic outlook.