• Indian Rupee (INR) rises after 4-days of losses
  • RBI minutes say that the fight against inflation hasn’t yet been won
  • US Dollar (USD) falls after jobless claims rise
  • Existing home sales fall 3.8%

The US Dollar Indian Rupee (USD/INR) exchange rate is falling after four straight days of gains. The pair rose 0.23% in the previous session, settling at 82.26. At 15:30 UTC, USD/INR trades -0.2% at 82.08 and trades in a range of 82.06 to 81.41.

The Rupee is rising thanks to USD weakness and after their Nets from the latest Reserve Bank of India monetary policy meeting. The minutes from the April meeting, where the central bank surprised the market by keeping interest rates on hold at 6.5%, suggested that the current rate hiking cycle may not be over. The RBI could be inclined to hike rates further towards the central banks 4% medium-term target.

The minutes point out that the fight against inflation hasn’t yet been won. The RBI is waiting to assess the impact of the rate hike cycle before moving again.

The US Dollar is falling across the board. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades -0.29% at the time of writing at 101.67, after booking gains in the previous session.

The US dollar is losing strength after disappointing macroeconomic data releases hurt demand for the greenback. US labor department’s weekly jobless claims data shows that the labour market is slowly starting to weaken. Initial jobless claims, which measure the number of Americans applying for unemployment benefit for the first time, rose by 5000 to 245,000 this was up from 240,000 in the previous week and was ahead of expectations of 240,000.

Meanwhile, continuing claims raised to 1.87 million, the highest number of continuing claims since November 2021.

The bad news didn’t stop there after existing home sales in the US declined by 2.4% in March after a 13.8% increase in February.

The data shows that the US economy is starting to slow even as Federal Reserve officials continue pushing for another rate hike in May.

 

 

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