- Indian Rupee (INR) rises in risk-on trade
- Domestic equities & oil prices rise
- US Dollar (USD) falls versus majors
- JOLTS job openings due
The US Dollar Indian Rupee (USD/INR) exchange rate is falling on Tuesday after holding steady in the previous session. The pair traded flat yesterday, settling at 81.49, trading in a range between 81.49 to 81.92 in the session. At 14:00 UTC, USD/INR trades -0.1% at 81.40.
The Indian Rupee is tracking domestic equities higher, and which are on track to book gains of 2%. A boost in banks, metal, and IT companies, in addition to upbeat quarterly results from companies, lifted investor sentiment.
This was a second straight day of gains as risk sentiment across the board improved. The Nifty 50 rose 2.3% and the Sensex gained 2.3%.
Separately oil prices continued to rise for a second straight session, adding to 5% gains in the previous session. West Texas Intermediate trades 2.8% higher at $83.35 as investors expect OPEC+ to cut output in the meeting tomorrow.
The US Dollar is falling across the board. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades at -0.75% at the time of writing at 110.90 after booking losses of 0.6% in the previous session.
The selloff in the USD continues. In the previous session, the USD weakened following softer than expected ISM manufacturing data. The data showed that new orders were falling as growth slows in a rising interest rate environment. The data boosted bets that the Federal Reserve may start to ease the pace at which it is hiking interest rates.
Today attention remains on the economic calendar with the release of factory orders, which are expected to rise 0.3% month on month in August after falling 1% in July.
JOLTS job openings will also be in focus and are expected to show that there are still 10.45 million vacancies in the US, which highlights the tightness that remains in the labour market. This data will be watched carefully ahead of Friday’s non-farm payroll report.