numbers-and-inr-currency-symbol - INR
  • Indian Rupee (INR) falls despite equities rising
  • Indian growth is set to slow next year
  • US Dollar (USD) holds steady versus major peers
  • US data points to a weaker economy

The US Dollar Indian Rupee (USD/INR) exchange rate is rising on for a third straight day. The pair settled +0.01% higher on Tuesday at 81.52. At 16:00 UTC, USD/INR trades +0.31% at 81.77 after trading a range of 81.55 – 81.72.

The Rupee is heading lower despite another move higher in the domestic equity market and despite oil prices ticking southwards.

India expects growth to slow in the coming year. The Indian government’s growth forecast for the coming year to 6% – 67.8% in the 2023/24 fiscal year, down from the 7% growth forecast for the current year, ending March 31. The slowdown comes as a global economic slowdown is likely to hurt exports.

The announcement from the ministry of finance comes ahead of tomorrow’s budget for the coming fiscal year.

The US Dollar is rising against the Rupee but holding steady against major peers. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades -0.03% at the time of writing at 102.20, snapping a three-day winning run.

The US dollar is pushing higher as investors digest a raft of data from the world’s largest economy and as investors look ahead to the Federal Reserve interest rate decision tomorrow.

Dayton today has broadly pointed towards a weakening economy. Q4 employment costs, which isn’t hugely a big market mover, grew at a clever rate van expected under this lower rate compared to Q3. Employment costs rose 1%, down from 1.2% and below forecasts of 1.1%. Data point have become more important after Federal Reserve chair Jerome Powell specifically said that it is one of the indicators that the Fed watch is to determine wage inflation.

separately U.S. consumer confidence also unexpectedly fell in January as households continued to worry about the outlook for the economy over the coming six months. Conference Board consumer confidence index slipped to 107.1 in January down from 109 in December. unless had expected the index to hold a 109.