- Indian Rupee (INR) holds steady across the week
- Domestic equities rally after weakness in October
- US Dollar (USD) falls versus major peers
- Fed left rates unchanged
The US Dollar Indian Rupee (USD/INR) exchange rate is holding steady on Thursday for a fourth straight session. The pair rose +0.01% in the previous week, settling on Wednesday at 83.25. At 18:00 UTC, USD/INR trades +0.01% at 83.26 and trades in a range of 83.17 to 83.33. The pair trades flat across the week.
The Rupee was holding steady against the US dollar as domestic equities pushed higher following the US Federal Reserve interest rate decision.
After two straight days of losses, the Nifty 50 rose 0.76% while the Sensex rose 0.77%.
US 10-year bonds falling to a two-week low boosts the attractiveness of Indian equities to foreign investors who had been recently selling out.
Foreign portfolio investors selling Indian shares hit a nine-month high in October, sending the Nifty 52 to its worst month this year
Meanwhile, oil prices pushed higher, but it’s still set to full. 3.5% across the week after fooling just shy of 3% last week.
The US Dollar is steady 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 -0.7% at the time of writing at 106.15, marking the second straight day of losses.
Extending losses for a second straight day on Thursday as investors continue to digest the Federal Reserve monetary policy meeting yesterday and the latest jobs data ahead of Friday’s non-farm payroll.
The Federal Reserve left interest rates on hold at a 22-year high for a second straight month and hinted that they have reached the end of the interest rate hiking cycles.
Federal Reserve chair Jerome Powell acknowledged that high yields have tightened financial conditions, removing some of the need to raise interest rates higher.
US jobless claims were under the spotlight today and came in at 217k, a seven-week high up from 210k the previous week and ahead of the 210k that economists had forecast. The data comes after data points earlier in the week have painted a mixed picture of the labour market. While ADP private payrolls rose by less than expected at 213,000, job vacancies were much higher than forecast.
Attention will now turn towards the payroll report which is due tomorrow and expected to show.
