- Indian Rupee (INR) falls amid concerns over China’s growth
- HSBC cuts its China growth forecast
- US Dollar (USD) falls versus major peers
- US housing starts are due today
The US Dollar Indian Rupee (USD/INR) exchange rate is rising after a flat finish in the previous session. The pair fell 0.01% yesterday, settling on Monday at 81.91. At 10:15 UTC, USD/INR trades +0.21% at 82.08 and trades in a range of 81.91 to 82.17.
The Rupee is heading lower on Tuesday amid ongoing concerns able to help the economic recovery in China. The Peoples Bank of China carpets primary loan rate by 10 basis points in order to stimulate the economy. The meat came after the Chinese central bank cut short and medium-term rates last week.
Meanwhile, HSBC became the next major bank to revise lower its China GDP forecast for this year. HSBC economy 8.3% this year, down from 6.3% previously expected. The bank blamed the weak property and business outlook for the downward revision. Yesterday Goldman Sachs lowered its growth forecasts for China to 5.4%.
The US Dollar is rising against the Rupee but falling versus its major peers. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades – 0.14% at the time of writing at 102.37, after two days of gains.
The US dollar is falling versus its major peers, Tracking U.S. Treasury yield and despite the risk-off tone in the market as US trades return following the extended weekend break for Juneteenth.
The economic calendar is light for today, with just US housing starts. Investors will look ahead to Federal Reserve Chair Jerome Powell’s testimony before Congress tomorrow.
Powell’s biannual appearance before Congress comes after the Federal Reserve skipped a June interest rate hike last week but increase expectations for peak rates to 5.6% up from 5.1%. Powell is widely expected to adopt a similar tone of messaging to last week. However, the market will be watching closely for signs that the Fed is close to the end of its hiking cycle.