- Indian Rupee (INR) falls after gains yesterday
- Domestic equities and oil fall
- US Dollar (USD) rises on hawkish Fed bets
- US PMI data is due shortly.
The US Dollar Indian Rupee (USD/INR) exchange rate is rising on Tuesday, reversing losses from the previous session. The pair settled -0.06% lower on Monday at 82.69. At 10:00 UTC, USD/INR trades +0.12% at 82.79 and trades in a range of 82.69 to 82.79.
The Indian Rupee is falling in risk-off trade as investors fret over the prospect of the Federal Reserve lifting interest rates higher than initially feared. Riskier assets such as stocks and the Rupee are falling.
The Senex and the Nifty 50 have both tipped into the red after a positive start to the day.
Separately oil prices are falling, offering some support to the Rupee. The prospect of higher interest rates dampening global growth and oil demand is pulling oil prices lower. At the time of writing WTI trades -1.1% at $76.50.
The US Dollar is rising across the board. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades +0.16% at the time of writing at 104.02, paring losses from the previous session.
The US dollar is pushing higher, tracking treasury yields northwards as traders await economic data for further clues over the resilience of the US economy even as the Federal Reserve continues to raise interest rates.
Traders will be back at their desks after the bank holiday weekend and looking toward the release PMI data for February. Expectations are for the data to show that the US economy improved slightly this month.
The composite PMI, which is considered a good gauge of business activity, is expected to rise to 47.5, up from 46.8. The level 50 separates expansion from contraction. Stronger than forecast PMI data will fuel bets that the Fed will need to raise interest rates higher for longer.
However, the main focus is on the minutes of the February Federal Reserve meeting, which are due tomorrow and could support the more hawkish stance of the Fed.