- Indian Rupee (INR) capitalizes on a weaker USD
- Oil prices hold steady
- US Dollar (USD) falls on bets the Fed will slow hikes
- US home sales data is due
The US Dollar Indian Rupee (USD/INR) exchange rate is falling on Wednesday for a second straight session. The pair traded fell -0.36% yesterday, settling at 82.44, trading in a range between 82.41 to 82.85. At 09:00 UTC, USD/INR trades -0.09% at 82.44.
The Indian Rupee is capitalizing on the weaker USD and pushing higher with some analysts suggesting that the Indian Rupee may have found a floor at this level. Should the Fed cool hikes, the Rupee could remain above 83.00 going forward.
The Indian stock markets are closed today for a public holiday.
Oil prices are holding steady on Wednesday. On the one hand, the price is supported by the falling US dollar. However, on the other hand, slowing growth is hurting the demand outlook. West Texas Intermediate trades -0.1% at $84.10 at the time of writing.
The US Dollar is falling across the board. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades at -0.70% at the time of writing at 110.17 after booking losses of 0.8% in the previous session.
The US dollar fell sharply yesterday after more disappointing data. US home price index for August showed house prices fell 1.6% month on month, well below forecasts of 0.7%. The data shows that the housing market is cooling as interest rates rise.
Then consumer confidence fell by more than expected to a 3-month low of 102.5, down from 107.9, and well below forecasts of 106.5. The data comes after business activity fell for a fourth straight month.
The data supports the idea of the WSJ report last week that the Federal Reserve could be warming to the idea of slowing the pace of rate hikes after the November meeting.
Today the USD continues to decline on slower rate hike bets. Attention will now turn to home sales data, which is expected to fall 13.9% month on month in September.