• Indian Rupee (INR) holds steady after possible intervention yesterday
  • Nifty 50 and Sensex fall in risk-off trade
  • US Dollar (USD) holds steady in a quiet day
  • There is no high-impacting data due

The US Dollar Indian Rupee (USD/INR) exchange rate is holding steady on Tuesday after losses at the start of the week. The pair slipped -0.5% yesterday, settling at 82.37, trading in a range between 82.63 – to 82.71 in the session. At 10:00 UTC, USD/INR trades +0.02% at 82.39.

The Indian Rupee rose yesterday. However, this was most likely a result the Reserve Bank of India intervening in the market the stem the Rupee’s decline. The Rupee booked gains versus the US dollar yesterday, while other Asian currencies booked strong losses.

Today domestic equities are falling for a third straight session, led lower by automobile stocks as risk aversion continues. Rising fears over a hawkish Federal Reserve and a warning from the World Bank and International Monetary Fund over growing recession risks pulled the Sensex and the Nifty 50 lower.

The US Dollar is holding steady after gains yesterday. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades at +0.02% at the time of writing at 113.11 after booking gains of 0.2% in the previous session.

The US dollar rose yesterday, despite the bond market being shut for Columbus Day. The economic calendar was quiet. However, a speech by the Federal Reserve’s Lael Brainard was in focus. The vice president reaffirmed the Fed’s focus on inflation and the need to hike rates to tame surging prices. She said that the pace of rates remains data dependent.

Her comments come after Friday’s non-farm payroll, which showed that the US labour market remained strong, with 263,000 jobs added in September, more than expected. Even so, Lael Brainard said that the Fed’s interest rate hikes were starting to slow the economy.

There is no high-impacting US data due today. Looking ahead, the minutes to the September FOMC are due to be released tomorrow and inflation data is due on Friday.