- Indian Rupee (INR) is supported against a strong USD
- Tata Technologies IPO opens for subscription
- US Dollar (USD) rises versus major peers
- FOMC minutes supported high rates for longer
The US Dollar Indian Rupee (USD/INR) exchange rate is holding steady for a second day. The pair rose +0.01% in the previous session, settling on Tuesday at 83.30. At 12:00 UTC, USD/INR trades -0.01% at 83.30 and trades in a range of 83.25 to 83.34.
The Indian rupee is supported thanks to IPO-related inflows and owing to strength in the Chinese yuan.
The IPO market has ramped up in India, with IPO ‘s worth $900 million lined up in the local market this week. These include the IPO of engineering firm Tata Technologies, which has opened for subscription today.
Whilst most Asian currencies were on the back for the Chinese yuan extended gains towards a four-month high.
The US Dollar is rising for a second straight day against its major peers. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades +0.15% at the time of writing at 103.72, after rising 0.1% yesterday.
The US dollar is pushing higher for a second straight day as investors continue digesting the minutes of the latest FOMC minute meeting.
The minutes of the November meeting showed that Federal Reserve officials supported a more careful approach to monetary policy setting and looked to continue to keep rates high for longer until inflation trended more closely to the 2% target.
The minutes suggested that officials were in favour of holding rates steady rather than raising interest rates further but expressed little appetite for cutting interest rates anytime soon.
Policymakers expressed some concern that inflation could remain persistent or even move higher with this in mind, they left the prospect of another interest rate hike on the table.
The market has fully priced in that the Fed will leave interest rates unchanged in December and expects the next move by the central bank to be a rate cut in the second quarter of next year
Looking ahead, attention now turns to a series of U.S. economic data that will come ahead of the Thanksgiving holiday tomorrow. US jobless claims, durable goods orders and Michigan consumer confidence will be under the spotlight.
