- Indian Rupee (INR) falls, and RBI intervenes
- Domestic equities fall for a 7th day
- US Dollar (USD) falls against major peers
- Jobless claims were better than expected
The US Dollar Indian Rupee (USD/INR) exchange rate is rising on Thursday after losses in the previous session. The pair fell -0.37% yesterday, settling at 81.40, trading in a range between 81.34 to 82.02. At 10:00 UTC, USD/INR trades +0.38% at 81.71.
The Indian Rupee continues to hover around record lows as the Reserve Bank of India sells dollar reserves to support the currency alongside the USD, which has risen strongly over recent weeks.
Domestic equities closed lower amid the risk-off mood as recession fears hit sentiment. Domestic equities ended lower for the seventh straight session, dragged lower by tech stocks ahead of the central bank meeting tomorrow.
The Nifty 50 closed 0.24% lower, and the Sensex dropped 0.33%. Foreign institutional investors have sold nearly $1.31 billion worth of equities so far this week until Wednesday.
The US Dollar is rising against the Rupee but is falling against its major peers. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades at -0.1% at the time of writing at 112.70 after booking losses of 0.9% in the previous session.
The US fell sharply lower yesterday as bond yields fell following an intervention by the Bank of England in the UK bond market, which helped to calm global bond markets at least for a day.
Today the USD is edging lower despite bond yields pushing higher and despite stronger than expected US economic data.
US jobless claims fell by more than expected, hitting a five-month low, highlighting the resilience of the labour market. The number of Americans filing new claims for unemployment fell to 193,000; this was down from 213,000 the previous week and below forecasts of 215,000.
US GDP for the second quarter confirmed the -0.6% contraction from the earlier reading. This was the final reading for GDP so is less market moving than initial prints.