- Indian Rupee (INR) falls after gains last week
- Domestic equities rise further
- US Dollar (USD) falls versus major peers
- Fed official Lisa Cook to speak
The US Dollar Indian Rupee (USD/INR) exchange rate is rising on Monday after booking small losses across last week. The pair fell -0.15% in the previous week, settling on Friday at 83.14. At 11:00 UTC, USD/INR trades +0.09% at 83.21 and trades in a range of 83.07 to 83.23.
The Rupee strengthened early on Monday but has since given up the gains despite falling U.S. treasury yields. Asian currencies were broadly up on Monday, led by the Malaysian ringgit and Korean won; however, the rupee lagged behind his peers amid high importer demand for U.S. dollars.
Meanwhile, Indian domestic equities were also on the rise; a welcome change after overseas investors had been net sellers of Indian equities in September, selling over $5.1 billion worth of shares.
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 -0.11% at the time of writing at 104.92, after booking losses of 1.4% last week.
The US dollar is falling lower, extending losses from last week, its worst weekly performance since July, after the Federal Reserve reined in hawkish rhetoric and as U.S. data supported this slightly dovish tilt from the central bank.
Last week, the Federal Reserve left interest rates on hold and 5.2% – 5.5% and sounded more dovish than what the market was expecting.
Weaker than expected U.S. jobs data on Friday supported the view that the Federal Reserve may be at the end of its rate hiking cycle.
US non-farm payroll saw 150,000 jobs created in October, below the 180,000 forecast. Meanwhile, September’s job creation figure was also downwardly revised to 297,000 from 336,000. The unemployment rate also ticked higher, and wage growth remained unchanged 0.2% month on month. The data showed signs that the US labour market was cooling after the Federal Reserve’s aggressive rate hiking cycle.
Today, there is no high-impacting U.S. data to be released attention will be on fudge Federal Reserve official Lisa Cook who is due to speak.
