inr-bank-notes - INR
  • Indian Rupee (INR) edges lower for a second day
  • Oil falls for a second day
  • US Dollar (USD) rises versus majors
  • US earning season begins

The US Dollar Indian Rupee (USD/INR) exchange rate is rising today for a second day. The pair rose +0.26% yesterday, settling at 82.74, trading in a range between 82.57 to 82.88. At 10:30 UTC, USD/INR trades +0.04% at 82.77. The pair is set to rise 0.5% across the week.

The Indian Rupee declined on Tuesday as a record-low drop in the Chinese yuan overset gains from a weaker USD. Meanwhile, Indian stock markets were shut on Monday and will be closed again on Wednesday which could cause a drop in liquidity.

Oil prices are heading lower for a second straight session, falling 0.8%. At the time of writing, West Texas Intermediate trades at $84.00. Weaker oil prices are good news for the rupee, given that Indian imports over 80% of its oil needs.

The US Dollar is rising across the board on Tuesday. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades at +0.18% at the time of writing at 112.06 after booking losses of -0.14% in the previous session.

The USD fell yesterday after comments from San Francisco Federal Reserve President Mary Daly, who said that it was time to start talking about slowing rate hikes. Her comments come as the market has a 0.75% rate hike fully priced in for November but is starting to price in the increasing likelihood of a 0.5% rate hike, rather than a 0.75% hike in December.

Data yesterday showed that business activity in the US weakened again in October. Activity contracted for a fourth straight month amid weaker client demand in the latest sign that the economy was slowing.

The US composite PMI fell to 47.3, down from 49.5 in September. The level 50 separates expansion from contraction.

Today US earnings season ramps up and will provide some insight into the health of the consumer.