- Indian Rupee (INR) rises after losses yesterday
- S&P Global Ratings forecasts strong growth of 6.4%
- US Dollar (USD) holds steady ahead of data
- US ISM services & JOLTS job openings due
The US Dollar Indian Rupee (USD/INR) exchange rate is falling after gains yesterday. The pair rose 0.2% in the previous week, settling on Monday at 83.42. At 12:00 UTC, USD/INR trades -0.04% at 83.38 and trades in a range of 83.36 to 83.43.
The Indian Rupee is gaining ground after the S&P Global Ratings predicted that the Indian economy will remain the fastest-growing major economy for the next three years, putting it on track to become the world’s third-largest economy by 2030.
The S&P said it expects India, which is currently the world’s fifth largest economy, to expand 6.4% this fiscal year and forecast growth of 7% by fiscal year 2027. This is in contrast to China’s growth rate, which it expects to slow to 4.6% by 2026 from 5.4% this year.
Meanwhile, Moody’s rating agency downwardly revised China’s credit outlook due to slowing growth and high debt.
The US Dollar is rising against the Rupee but is holding steady versus its major peers. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades +0.03% at the time of writing at 103.72, after strong gains on Monday.
The U.S. dollar is holding steady after strong gains in the previous session as traders reined in their dovish Federal Reserve bets ahead of a key week for economic data.
The U.S. dollar fell over 3% across November as traders started to price in larger rate cuts by the Federal Reserve across 2024.
However, after a steep decline, traders are reassessing those dovish Fed bets ahead of a week of important data releases, including today’s job openings and ISM services activity data, which comes ahead of the closely watched non-farm payroll report on Friday.
Economists are expecting JOLTS job openings to ease slightly to 9.33 million, down from 9.55 million, which could be hinting towards some weakness. In the US jobs market after the Federal Reserve’s aggressive rate hiking cycle
Meanwhile, the ISM services PMI is expected to take higher to 52 in November up from 51.8. Given that the service sector is the dominant sector in the US economy, growth at a faster pace could be considered inflationary, and strong PMI data could cause the market to push back on rate-cut bets, lifting the dollar.
