- Indian Rupee (INR) rises as risk sentiment improves
- Domestic equities rise
- US Dollar (USD) falls as markets reprice Fed expectations
- US Michigan confidence data due
The US Dollar Indian Rupee (USD/INR) exchange rate is falling for a second straight session. The pair settled -0.33% higher on Thursday at 82.62. At 10:00 UTC, USD/INR trades -0.15% at 82. 5 and trades in a range of 82.42 to 82.86. The pair is expected to rise 0.67% across the week.
The Indian rupee is pushing higher along with its Asian peers amid a risk on mood in the market, which supports riskier assets and currencies like the Rupee.
Domestic equities are rising at the end of a volatile week. The Sensex trades +0.3% higher at the time of writing but is still on track to lose 3.4% across the week.
Oil prices are also edging higher on reports that OPEC could step in to support the market after oil prices dropped over 10% across the week.
The US Dollar is falling across the board. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades -0.36% at the time of writing at 104.05 after losses yesterday. The USD is expected to fall 0.5% across the week.
The US dollar is falling lower amid an improved market mood after a number of U.S. banks teamed together to inject 30 billion in deposits into first Republic bank. The move supported the regional bank, which had been caught up in the collapse of two other smaller USA banks at the weekend.
The US dollar is also under pressure as these cracks that appearing in EU S banking system are raising questions over whether the Fed will continue to hike rates aggressively. the market is now pricing in a 25 basis point rate hike in the meeting next week which is down from A50 basis point hike expected just a week earlier.
looking across today attention will turn to US Michigan consumer confidence data which is expected to show that confidence held steady in March at 67, a 13 month high.