• Indian Rupee (INR) tracks domestic equities higher
  • Oil falls across the week
  • US Dollar (USD) rises versus majors
  • US jobless unexpectedly fell

The US Dollar Indian Rupee (USD/INR) exchange rate is holding steady on Friday after losses in the previous session. The pair fell -0.23% yesterday, settling at 82.82, trading in a range between 82.53 to 83.26. At 14:30 UTC, USD/INR trades -0.02% at 82.81. The pair is set to rise 0.5% across the week.

The Rupee is pushing higher, tracking domestic equities higher. Indian shares end on a positive note for a sixth straight session. Strong corporate earnings, including from Axis Bank, have overshadowed worries of central banks hiking interest rates and significant global economic slowdown.

The Nifty 50 settled 0.07% higher at 17,576 while the Sensex finished 0.18% higher at 59,307.

Separately oil prices were holding for a second straight session as optimism over increased Chinese demand is being offset by recession fears hurting the demand outlook. Still West Texas Intermediate is still set to fall 0.4% across the week.

The US Dollar is holding steady against the Rupee but is rising against its major peers. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades at +0.23% at the time of writing at 113.13 after booking losses of 0.05% in the previous session. The USD is set to fall -0.15% across the week.

The USD is rising, tracking US treasury yields higher. Hawkish Federal Reserve speakers have been reiterating the US central bank’s commitment to reining in inflation.

The hawkish mood was boosted yesterday by stronger-than-expected US jobless claims. Initial jobless claims fell to 214,00, down from 228,000 the previous week. The data suggests that the US labour market remains resilient even as borrowing costs are rising and inflation remains elevated.

The rally in the USD could be limited after a report from the WSJ, which said that some Federal Reserve policymakers are signaling their desire to rein in the size of rate hikes after the November meeting.