• Indian Rupee (INR) falls tracking equities lower
  • Account deficit to improve
  • US Dollar (USD) rises on hawkish Fed bets
  • US durable goods orders due

The US Dollar Indian Rupee (USD/INR) exchange rate is rising after two straight days of decline. The pair settled -0.33% lower on Thursday at 82.23. At 10:00 UTC, USD/INR trades -0.15% at 82.36 and trades in a range of 82.19to 82.54. The pair is expected to fall 0.21% across the week.

The rupee is falling tracking domestic equities lower in risk off trade as concerns over global banking stability linger. The Sensex trades -0.5% at the time of writing.

On the data from India’s current account deficit is expected to have improved in the final three months of 2022 from a nine year high in the July to September quarter. Expectations are for a account deficit of $23 billion in October to December.

The US Dollar is rising 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 102.95 adding to yesterday’s gains. The USD is expected to fall 0.75% across the week.

The U.S. dollar is rising, adding to gains from the previous session. stronger than expected US jobless claims data helped to boost the us dollar yesterday. initial jobless claims fell to a three-week low of 191,000 from 192,000 in the previous week. expectations had been for an increase to 198,000. The data shows that the US labour market is still very tight, which pours cold water On the markets ideas that the Fed could start to cut interest rates by the end of the year.

Today the US dollar is looking ahead to more key data points including US durable goods orders and PMI business activity data. Durable goods orders alright expected to rise 0.6% month on month, after falling 4.5% in January.

Meanwhile the composite PMI which is broadly considered a good gauge for business activity is expected to hold steady at 50.1 where by the level 50 separates expansion from contraction. Strong U.S. data could lift the US dollar higher.