- Indian Rupee (INR) rises after losses last week
- Domestic equities rises in best daily performance in 3-weeks
- US Dollar (USD) falls extending losses from last week
- Consumer confidence data is due on Wednesday
The US Dollar Indian Rupee (USD/INR) exchange rate is edging lower on Monday after gains across last week. The pair rose 0.3% last week, settling on Friday at 82.70. Today, at 14:30, USD/INR trades -0.1% at 82.61, trading in a range between 82.57 to 82.82.
The rupee is rising, tracking domestic equities higher. Indian shares posted their best daily performance in over three weeks thanks to gains in consumer and automobile stocks. The rally comes after a steep two-day sell-off at the end of last week amid rising fears of a global recession.
The Nifty 50 closed 0.83% higher, and the Sensex rose 0.76% after both indices fell by more than 2% last week after the hawkish US Federal Reserve announcement hit risk sentiment.
Oil prices are rising at the start of the week after dropping over $2 per barrel last week on demand fears.
The US Dollar is falling across the board. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades at -0.15% at the time of writing at 104.65, extending losses from last week.
The US dollar fell last week after inflation data cooled by more than expected, but the Federal Reserve warned that interest rates would rise higher than initially expected in the coming year The Fed increased the projected terminal rate to 5.1%, up from 4.6%.
The prospect of higher interest rates for longer, combined with weaker-than-expected business activity data on Friday, is raising concerns over a recession in the US. The US composite PMI dropped to 44.5 in December from 46.8. The level 50 separates expansion from contraction.
Today the US economic calendar it’s quiet, with just housing price index figures to digest. Looking out across the week, investors will be focusing on consumer confidence data due on Wednesday and the core PCE index due on Friday, which is the federal reserves preferred measure of inflation.