- Indian Rupee (INR) falling for a 4th day
- Manufacturing PMI rises to 57.2
- US Dollar (USD) rises versus major peers
- US factory orders and US job vacancies
The US Dollar Indian Rupee (USD/INR) exchange rate is rising for a fourth straight day. The pair rose 0.03% in the previous session, settling on Tuesday at 81.77. At 10:00 UTC, USD/INR trades +0.14% at 81.88 and trades in a range of 81.73 to 81.93.
The Rupee is falling against a stronger USD and despite encouraging Indian manufacturing data. India’s factory activity expanded at its fastest pace in four months in April, owing to solid growth in new orders and output.
The manufacturing PMI rose to 57.2 in April, up from 56.4 in March, remaining above the level 50, which separates expansion from contraction for a 22nd month. This was also ahead of forecasts of 55.8.
The stronger-than-forecast manufacturing data suggests that India will continue to be one of the fastest-growing major economies despite slowing global growth.
The US Dollar is rising across the board. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades +0.02% at the time of writing at 101.20, extending gains for a fifth straight day.
The U.S. dollar continues to rise on Tuesday as investors look to the start of the Federal Reserve’s 2-day policy meeting and ahead of US economic data.
US factory orders and jolts jobs openings are in focus. US factory orders are expected to rebound by 1.1% month on month in March, rebounding from -0.7% contraction in February. The data comes after ISM manufacturing PMIs yesterday showed that the sector contracted by less than expected and that input prices rose by more than forecast.
The JOLTS job opening data comes ahead Friday’s non -farm payroll report and is expected to show that job vacancies fell again in March after dropping to a 22-month low in February in a signal that the jobs market is starting to weaken.
The Fed kicks off the two day FOMC meeting today, with the rate decision due tomorrow.