• Indian Rupee (INR) tracks domestic equities higher
  • Oil is also set for a weekly gain
  • US Dollar (USD) falls as inflation data falls
  • US retail sales and consumer morale data due

The US Dollar Indian Rupee (USD/INR) exchange rate is holding steady after two days of losses. The pair fell -0.34% in the previous session, settling at 81.65. At 10:00 UTC, USD/INR trades -0.01% at 81.65 and trades in a range of 81.51 to 81.80. The pair is set to fall 0.2% across the week.

The Rupee is holding steady but is set to book gains across the week against a softer USD on hopes that the Fed is close to ending its tightening cycle. Domestic Indian equities are pushing higher again for the ninth straight session.

Rising oil prices could limit gains in the Rupee. Oil is set to gain 2.5% across the week, marking the fourth straight week of gains. Oil continues to find support from OPEC output cuts and the weaker USD.

The US Dollar is falling across the board. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades -0.15% at the time of writing at 100.87, extending losses for a fourth straight day.

US dollar is falling lower, extending losses from yesterday as cooling wholesale inflation and a larger than expected rise in initial jobless claims fueled at that the Federal Reserve could soon pause interest rate hikes.

US PPI, which measures inflation at the wholesale level, cools to 2.7% year on year in March, down from 4.9% in February. Meanwhile, jobless claims rose to 239,000 up from 228,000 in the previous week. Cooling inflation and a cooling jobs market have investors believing it could even cut interest rates this summer.

Attention is now turning to you S retail sales and the University of Michigan consumer sentiment data. Retail sales are expected to fall -0.4% month on month, after falling -0.4% month on month in February.

Meanwhile, consumer sentiment is expected to hold steady at 62 in April. Weaker-than-expected consumer morale and retail sales could fuel recession fears and pull the U.S. dollar lower.