- Indian Rupee (INR) falls but by less than Asian peers
- Oil falls 1.8%
- US Dollar (USD) rises after hawkish Fed comments
- More Fed speakers are in focus
The US Dollar Indian Rupee (USD/INR) exchange rate is rising on Friday, reversing losses from the previous two days. The pair settled +0.14% higher in the previous session, settling at 82.71. At 10:00 UTC, USD/INR trades +0.14% at 82.88 and trades in a range of 81.73 to 82.85. The pair is set to rise 0.4% across the week, marking the fourth straight week of gains.
The rupee is heading modestly lower and continues to trade in a relatively narrow range and avoids the large losses experienced by its agent pairs. While the Indian rupee has edged lower, the Korean won plunged by more than 1% and the Malaysian ringgit was down 0.6%. This is because the Rupee, while sensitive to the USD, is less sensitive than other Asian currencies.
Separately falling oil prices also help to cap losses in the Rupee. West Texas Intermediate trades -1.8% lower at $77.30.
The US Dollar is rising across the board. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades +0.62% at the time of writing at 104.50, a six-week high. The USD is set to rise 0.8% across the week, the third straight week of gains.
The US dollar is surging higher on Friday as investors continue digesting strong U S economic data and hawkish comments from Federal Reserve policymakers.
Yesterday US wholesale inflation as measured by the producer price index (PPI) rebounded, rising by the largest amount since June. The data highlights persistent inflationary pressures, which could see the Federal Reserve lifting interest rates higher and for longer.
Following the data Federal Reserve presidents Loretta Mester and James Bullard both supported more rate hikes saying that a return to 50 basis point hikes could be appropriate to lock in disinflation.
There is no high-impacting U.S. economic data due to be released today instead, attention will remain on more Fed speakers, set to hit the airwaves.