inr-bank-notes - INR
  • Indian Rupee (INR) falls in risk-off trade
  • Indian GDP is expected to expand 5%
  • US Dollar (USD) rises on hawkish Fed bets
  • US JOLTS job openings

The US Dollar Indian Rupee (USD/INR) exchange rate is for a third straight session. The pair rose 0.1% yesterday, settling on Tuesday at 82.66. At 12:30 UTC, USD/INR trades +0.09% at 82.74 and trades in a range of 82.62 to 82.76.

The repair is falling on Wednesday amid risk of trade after weaker-than-expected Chinese manufacturing data, which raises concerns over the strength of the post-pandemic recovery. Chinese manufacturing activity contracted by more than expected in May to 48.8, 5-month low defying expectations of an increase to 49.4.

The weak data fueled concerns over the growth outlook for the world’s second-largest economy, hitting risk appetite.

Looking ahead, Indian GDP data is expected to show that the economy grew by 5% in the January to March quarter compared to a year earlier. This is up from 4.4% in the previous quarter thanks to steady urban demand and government spending,

The US Dollar is rising across the board. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades +0.42% at the time of writing at 104.48, rebounding from losses in the previous session.

The US dollar is pricing on safe-haven flows, the disappointing China data, and as investors digested the latest developments surrounding the US debt ceiling bill.

Bill has cleared its first procedural hurdle in Congress and will face a vote in the House of Representatives today. It’s progressing hey Congress as expected, which will give the Senate time to vote ahead of the June 5th cut-off.

Investors and outlining our attention back to the Federal Reserve and U S economic data. Steve and Fed President Loretta Mester said that she saw no compelling reason to pause interest rate hikes in June.

Comments come after the whole PCE; the Fed’s preferred measure of inflation unexpectedly rose in April to 4.7%, up from 4.6%.

Looking ahead, US jolts job openings, the Fed Beige Book, and several Fed speakers are in focus.