- Indian Rupee (INR) edges lower, paring yesterday’s gains
- Domestic equities rise, oil falls
- US Dollar (USD) edges lower versus majors
- US PPI & FOMC minutes are in focus
The US Dollar Indian Rupee (USD/INR) exchange rate is rising on Wednesday, paring losses from the previous session. The pair fell -0.14% yesterday, settling at 82.25, trading in a range between 82.09 to 82.50. At 10:00 UTC, USD/INR trades +0.09% at 82.32.
The Indian Rupee gained yesterday amid beliefs that the Reserve Bank of India stepped in to halt a slide in the domestic currency. The central bank is believed to be active in the market since Monday, when the currency fell to a record low.
Domestic equities are gaining ground after three straight days of declines. The Sensex trades 0.22% higher and the Nifty50 gains 0.26%.
Oil prices are falling for a third straight session. After gaining 16% last week, oil has fallen around 3.5% this week amid recession fears and rising China COVID cases.
The US Dollar is rising against the Rupee but 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 113.24 after booking gains of 0.24% in the previous session.
The USD pushed higher in the previous session after Federal Reserve officials kept up with the hawkish commentary. Cleveland Fed President Lorretta Mester said that the US central bank still had plenty of work to do as there had been no progress on inflation. She said that the Federal Reserve needed to act more aggressively to rein in inflation.
Looking ahead, attention now shifts to US wholesale inflation, which is expected to inch lower to 8.4% year on year in September, down from 8.6%.
The minutes to the September FOMC are also due to be released and are expected to reiterate the Fed’s hawkish position. The minutes come from a meeting where the Fed hiked rates by 75 basis points and lifted expectations for hikes across the rest of the year.