inr-bank-notes - INR
  • Indian Rupee (INR) falls, extending last week’s losses
  • Oil prices continue to fall
  • US Dollar (USD) falls versus major peers
  • There is no high-impacting US data today

The US Dollar Indian Rupee (USD/INR) exchange rate is rising on Monday after gains last week.  The pair rose 1.2% last week, settling at on Friday at 82.41. Today, at 11:30, USD/INR trades +0.17% at 82.54, trading in a range between 82.43 to 82.74.

The Rupee has underperformed its Asian counterparts over the past few weeks on U.S. dollar outflows and likely equity repositioning. The Chinese yuan has risen 2.8% across these two weeks, whilst the rupee has dropped 1.2%.

Indian equities were mixed on Monday, with the Sensex extending last week’s losses and the Nifty 50 closing flat on the day.

Meanwhile, oil prices were offering support to the Rupee falling again after dropping 11% last week. West Texas intermediate trades at 70.60, around its lowest level this year, amid concerns of a recession in the US and as Covid cases in China jump.

The US Dollar is rising versus the Rupee but falling across the board. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades at -0.07% at the time of writing at 104.74, snapping a two-day winning run.

The US dollar is heading lower after rising across the previous week. The USD is falling as investors look ahead to a busy week on the US economic calendar and particularly to the Federal Reserve interest rate decision on Wednesday.

The US dollar rose last week after stronger-than-expected data. On Friday, US PPI inflation was stronger than expected in November at 7.4% YoY, down from 8.1% but ahead of the 7.3% forecast. The data came after strong jobs data and better than forecast ISM services PMI, raising doubts over the federal reserve’s ability to slow the rate of rate hikes.

There is no high impacting U.S. economic data today; investors will look ahead to US data tomorrow, which is expected to cool a further 3% YoY.