- Indian Rupee (INR) slips after gains yesterday
- Nifty 50 saw its worst session in 9 months
- US Dollar (USD) rises with Friday’s inflation data in focus
- US consumer confidence data is due today
The US Dollar Indian Rupee (USD/INR) exchange rate is rising after losses yesterday. The pair fell -0.05% in the previous session, settling on Tuesday at 83.10. At 12:00 UTC, USD/INR trades +0.1% at 83.19 and trades in a range of 83.03 to 83.19.
The Indian rupee is edging lower after Indian domestic equities fall. The Nifty 50 posted its worst session in nine months on Wednesday as investors booked profits.
The Nifty 50 dropped 1.4%, while the Sensex fell 1.3%. The move lower comes as both indices had risen 0.65% at one point in the session to all-time highs before falling lower. More domestically focused stocks underperformed.
The US Dollar is rising across the board. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades +0.2% at the time of writing at 102.39, after two days of losses.
The U.S. dollar is pushing higher after two days of losses as investors look cautiously ahead to US inflation data on Friday.
Recent Fed speakers have pushed back on expectations of several rate cuts early next year after the Federal Reserve interest rate decision last week showed that the Fed was looking to cut rates three times in 2024.
Still, Fed speakers such as John Williams, Loretta Mester, and Raphael Bostic have said that there is no urgency for rates to be cut and indicated that the market is ahead of the Fed on rate cut expectations.
The market will now look to inflation data to decide whether to listen to the Fed peddling back after its dovish pivot or whether the market will continue ahead with expectations that the Fed will cut rates next year.
Today, attention will be on U.S. consumer confidence data, which is expected to tick higher to 104, up from 102 in November.
Improving consumer confidence often goes hand in hand with increased household spending and so would be a good sign for the US economy.
On Friday, core PCE, the Federal Reserve’s preferred gauge for inflation, was expected to show that inflation cooled to 3.2%.
