- Indian Rupee (INR) rose to a two-week-high
- Indian stocks rise as risk appetite improves
- US Dollar (USD) falls against major peers
- US NFP in focus
The US Dollar Indian Rupee (USD/INR) exchange rate is rising after falling in the previous session. The pair fell -0.5% yesterday, settling on Thursday at 82.26. At 10:30 UTC, USD/INR trades +0.08% at 82.33 and trades in a range of 82.26 to 82.44. The pair is set to fall -0.;28% across the week, its second straight week of declines.
The engine rupee rose to a two-week high against the US dollar amid an upbeat market mood after the US Senate passed the debt ceiling bill meaning that the US will avoid a debt default. The news boosted risk appetite across the globe, driving demand for riskier assets such as stock and currencies such as the Indian rupee.
Separately data showed that India’s goods and services tax collection jumped 12% year on year to $19.06 billion in May.
Attention now turns towards Indian foreign exchange reserves, which are expected to have increased 2595.62 billion in the week ending May 26.
The US Dollar is rising against the Rupee but falling against sector peers. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades -0.02% at the time of writing at 103.51, extending losses from the previous session. The USD is set to fall 0.66% this week, after 3 straight weeks of gains.
The US dollar is coming under pressure after Federal speakers hint towards skipping a rate hike in June. Philadelphia Fed President Patrick Harker said that he believes that the Fed is close to the point where they can hold rates in place.
Attention now turns to US nonfarm payroll report, which is expected to show that 190,000 jobs were added in May, down from 253,000 in April. Meanwhile, unemployment is expected to rise to 3.5% up from 3.4% and average earnings are expected to hold steady at 4.4%. A hot jobs report could fuel hawkish Fed bets.