• Indian Rupee (INR) falls for a third day
  • Indian exports could be hit by EU levy
  • US Dollar (USD) rose after hawkish FOMC minutes
  • US ADP payrolls beat forecasts

The US Dollar Indian Rupee (USD/INR) exchange rate is rising, extending gains for a third straight session. The pair rose 0.55% yesterday, settling on Thursday at 82.39. At 16:30 UTC, USD/INR trades +0.47% at 82.78 and trades in a range of 82.30 to 82.82.

The repair fell on Thursday, recording its worst daily performance in a month against the US dollar on Thursday, hitting a three-week low. The weakness comes as the markets expect a more hawkish US Federal Reserve.

Separately Indian exports could be hit by the European Union’s expected tariffs on high-carbon goods such as steel, I know, and cement. The EU approved the world’s first plan to impose a levy on high carbon goods imports, although this will be from 2026 as it aims to become a net zero emitter of greenhouse gases by 2050. This is some 20 years earlier than India’s target.

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 at -0.09% at the time of writing at 103.30, after gains in the previous session.

The US dollar rose firmly in the previous session and is holding on to most of those gains after the June Federal Reserve monetary policy meeting minutes were more hawkish than the market was expecting. The minutes showed that June was a skip rather than a pause, with policymakers supporting another rate hike in July and potentially further rate hikes before the end of the year. Policymakers remain concerned about the inflation levels, which they called too high and unacceptable.

Today there was a lot of data released from the US. Hi SM services, PMI came in stronger than expected at 53.9, up from 50.3 and above the 51 that unless we’re expecting new orders were strong and prices paid were also above expectations.

Separately the ADP payroll report showed that 497,000 private payrolls were added in June, up from 267 in May and well above the 228,000 forecast. Jones jobs openings well also relatively strong at 9.8 million, down from 10.10 million