- Indian Rupee (INR) rises, reversing yesterday’s losses
- GDP growth of 4.4% lower than forecast
- US Dollar (USD) slips after weaker data
- US ISM manufacturing PMI is due
The US Dollar Indian Rupee (USD/INR) exchange rate is falling on Wednesday for a third straight day. The pair settled -0.01% lower on Tuesday at 82.64. At 10:00 UTC, USD/INR trades -0.09% at 82.57 and trades in a range of 82.36 to 82.62.
The Rupee fell yesterday after GDP data showed that growth slowed in the October to December quarter. Economic growth was 4.4%, below the 4.6% forecast and below the 6.3% growth recorded in Q3.
The data showed that the manufacturing sector contracted by 1.1% year on year amid slowing external demand as central banks across the globe hiked interest rates.
Today the Rupee is rising amid an upbeat market mood following stronger-than-forecast Chinese PMI data. The manufacturing sector jumped to 52.6, its fastest pace of expansion in over a decade. The upbeat mood has lifted demand for riskier assets and currencies such as the Rupee.
The US Dollar is falling across the board. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades -0.4% at the time of writing at 104.45, reversing gains from the previous session.
The US dollar is falling At the start of a new month after posting strong gains in February. Weaker-than-expected data yesterday fueled bets that the Federal Reserve’s interest rate hikes with starting to take effect.
Consumer confidence was weaker than expected falling to 102.9 in February, down from 107.1 in January and missing forecasts of 108.5. the report from the Conference Board showed that consumers were apprehensive about buying big-ticket items, which could suggest that spending will slow and inflation cool over the coming months.
The data comes after figures showed that inflation in January was stickier than initially expected.
Today attention will remain on do U.S. economic calendar with the release of ISM manufacturing PMI figures, which are expected show that business activity in the sector slowed at a milder pace.