- Indian Rupee (INR) holds steady for another session
- Indian GDP came in ahead of forecasts
- US Dollar (USD) rises versus major peers
- US core PCE data is due
The US Dollar Indian Rupee (USD/INR) exchange rate is holding steady for another session. The pair rose +0.01% in the previous session, settling on Wednesday at 83.35. At 13:00 UTC, USD/INR trades +0.02% at 83.36 and trades in a range of 83.19 to 83.39.
The Rupee is holding steady as data show that the Indian economy grew at a much faster pace than expected in the July to September quarter, thanks to government spending and manufacturing.
The Indian economy expanded by 7.6% in that quarter, ahead of analysts’ forecasts of 6.8% and the Reserve Bank of India’s estimate of 6.5%. However, this was slightly slower than the 7.8% growth seen in the previous quarter.
Attention now is turning to the OPEC+ meeting, where the group of oil-producing nations is expected to cut in oil output by a further 1 million barrels per day.
The US Dollar is steady against the Rupee but rising versus its major peers. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades +0.4% at the time of writing at 103.20, adding to yesterday’s gains.
The US dollar is pushing higher for a second day as investors await the key inflation data, which will provide further clues as to whether the Federal Reserve has finished its rate hiking cycle.
The core personal consumption expenditure index, core PCE, the Federal Reserve’s preferred measured measure for inflation, is set to ease to 3.5% year on year in October, down from 3.7% in September.
On a monthly basis, the index is expected to rise just 0.1% after rising 0.4% in the previous month.
The data comes after the US consumer price index another gauge for inflation cooled by more than expected to 3.2% in October.
Cooling inflation is fueling bets that the Federal Reserve will not raise interest rates any further and that the next move expected from the central bank will be a rate cut.
Earlier in the week, Federal Reserve governor Christopher Waller said that if inflation continues to cool then the Fed could consider cutting rate, hinting towards the dovish pivot.
Following today’s inflation, New York Federal Reserve president Williams will speak ahead of comments from Federal Reserve chair Jerome Powell tomorrow
