• Indian Rupee (INR) rises after 2-days of losses
  • Indian domestic equities rise & oil rises
  • US Dollar (USD) falls versus major peers
  • Federal Reserve hiked rates by 25 bps

The US Dollar Indian Rupee (USD/INR) exchange rate is falling, snapping two days of gains. The pair rose +0.12% in the previous session, settling on Wednesday at 81.95. At 10:30 UTC, USD/INR trades -0.02 % at 81.93 and trades in a range of 81.89 to 82.02.

The Rupee is rising, tracking Indian equities higher amid a risk on mood in the market. The Fed sticking to the script and raising rates as expected but nearing peak rates has boosted the market mood globally.

While Indian equities are rising, oil prices are also rising on hopes that the US, the world’s largest oil consumer, could avoid a recession. Supply worries are also boosting the price ahead of the OPEC+ meeting next week. West Texas Intermediate trades at a 3.5-month high.

The US Dollar is falling across the board. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades at -0.23% at the time of writing at 101.66, extending losses for a third straight day.

The US dollar is falling after the Federal Reserve raised interest rates by 0.25%, in line with expectations. This was the 11th interest rate hike in 12 meetings and takes the rate range to 5.25% to 5.5%, its highest level in over two decades.

Fed chair Powell acknowledged that rate hikes appear to be working in slowing the economy and taming inflation, although he added that June’s inflation print was just one data print. More data needs to be looked at to decide whether or not to hike rates again in September.

With two inflation reports and two non-farm payroll reports due before the next FOMC meeting, there will be plenty of figures for the Fed to analyse.

The US dollar dropped as the market considers that the Fed is close to the end of its rate hiking cycle.