- Indian Rupee (INR) rises after hitting a record low
- RBI intervention suspected
- US Dollar (USD) falls for a second day
- US existing home sales due
The US Dollar Indian Rupee (USD/INR) exchange rate is falling for a second day. The pair settled -0.09% in the previous session on Monday at 83.09. At 10:30 UTC, USD/INR trades -0.14% at 82.99 and trades in a range of 82.96 to 83.14.
The Rupee inches up from a record low on the back of a weaker US dollar. However, the upside is expected to be limited, given the outlook for rates in the US.
The Rupee trades within a narrow range thanks to expected intervention from the Reserve Bank of India.
The risks for the currency appear to be piled to the downside, according to analysts, so further weakness could be on the cards.
Worries over the health of the Chinese economy have eased slightly today but remain a key concern in Asia and globally.
The US Dollar is falling across the board. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades at -0.21% at the time of writing at 103.1, extending losses from the previous session.
The USD is falling as treasury yields tick lower and as the market mood improves slightly. Highlighting the risk on market mood, US futures are rising for a second day as investors focus on tech earnings ahead of Nvidia’s release on Wednesday and after SoftBank unveils Arm’s IPO. As a result, safe haven outflows pulled the USD lower.
Meanwhile, US 10-year treasury yields are falling after reaching a 16-year high overnight of 4.34%, lifted by expectations that the Federal Reserve will keep interest rates higher for longer amid a persistently strong US economy.
Looking ahead, attention turns to US existing home sales which are expected to slip to 4.15M in July from 4.16M in June.
Several Federal Reserve speakers are due to hit the airwaves later today. Investors will be paying attention to what Fed officials are saying ahead of Fed Chair Powell’s speech on Friday.