inr-bank-notes - INR
  • Indian Rupee (INR) rises but is set to fall across the week
  • China woes hit risk sentiment
  • US Dollar (USD) rises on hawkish Fed bets
  • No US economic data is due

The US Dollar Indian Rupee (USD/INR) exchange rate is falling for a second straight session. The pair fell -0.1% in the previous session, settling on Thursday at 83.13. At 12:30 UTC, USD/INR trades -0.02% at 83.11 and trades in a range of 82.98 to 83.13. The pair is set to rise 0.27% this week, marking the fourth straight weekly gain.

The Rupee is holding up despite growing concerns over the health of the Chinese economy. The domestic situation in China appears to be deteriorating after Evergrande filed for bankruptcy protection in the US, and as Zhongrong International Trust, a major player in the Chinese Trust sector, has missed several debt servicing obligations in recent weeks.

As a result, the market mood has soured, with riskier currencies and Asian currencies coming under pressure. The Sensex also closed 0.3% lower, and the Nifty 50 fell 0.28%. Indian shares are set to fall across the week marking the fourth straight weekly decline and the longest weekly losing streak in 15 months.

The US Dollar is rising across the board. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades at +0.1% at the time of writing at 103.50 after small losses in the previous session. The US dollar is set to rise 0.64% across the week marking the fifth straight weekly rise.

The US dollar has risen across the week, hitting its highest level since early June, as treasury yields surged. The US 10-year treasury yield jumped to 4.32%, just below the October 4.33% level and the level seen in 2007.

The USD is being boosted by expectations that the Federal Reserve could raise interest rates again and keep them higher for longer. The minutes to the July FOMC meeting show that policymakers see an upside risk to inflation.

Today, there is no high impacting US economic data. Instead, sentiment is likely to influence the pair.