- Indian Rupee (INR) falls after gains last week
- Nifty 50 jumps over 1%
- US Dollar (USD) falls versus major peers
- US debt ceiling worries persist
The US Dollar Indian Rupee (USD/INR) exchange rate is rising after losses last week. The pair fell -0.02% in the previous week, settling on Friday at 81.70. At 18:00 UTC, USD/INR trades +0.10% at 81.78 and trades in a range of 81.67 to 81.83.
The Rupee edged lower at the start of the week, despite a strong performance from domestic equities. Indian shares were on the rise on Monday after financials rebounded from a slide on Friday.
India’s key benchmarks rose over 1% thanks to a recovery in financials, strong earnings, and a broadly upbeat market mood; of the 13 major sectorial indices 11 advanced. The financials index raise 1.5% after recovering from a 2.3% decline on Friday in its worst one-day performance in three months.
Separately oil prices rose over 2%, building on gains from the end of last week, as the strong US jobs report helped to calm recession fears.
The US Dollar is rising versus the Rupee but falling versus its major pairs. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades -0.03% at the time of writing at 101.19, after booking losses across last week.
The US dollar came under pressure at the start of the week as debt ceiling talks in Washington raised concerns and as investors looked ahead clear US inflation data which is due out on Wednesday and could provide more clarity over the federal reserve’s next move for monetary policy.
US president and top Republicans and Democrats from Congress are due to sit down this week in an attempt to resolve the ongoing standoff between them over the $31.4 trillion US debt ceiling, which if unresolved, could result in the US defaulting on its debt potentially as soon as early June.
While the US dollar had fallen across last week, it did actually rise on Friday following strong US payroll data which calmed investor fears of a recession and also prompted investors to re-think the chances of a July rate cut.
