- Indian Rupee (INR) rises after 6-days of losses
- India to ban sugar exports
- US Dollar (USD) rises versus major peers
- Jackson Hole Symposium kicks off
The US Dollar Indian Rupee (USD/INR) exchange rate is rising snapping a 6-day losing streak. The pair settled -0.64% in the previous session, settling on Wednesday at 83.50. At 12:30 UTC, USD/INR trades +0.10% at 82.59 and trades in a range of 82.36 to 83.59.
The Indian Rupee is pushing higher as the Rupee benefits from falling US treasury yields and an upbeat market mood.
Blowout results from Nvidia, the chip maker whose chips are used in large language models smashed forecasts and guidance was also well ahead of Wall Street’s lofty expectations. The news has driven a risk on mood across financial markets, helping to drive demand for riskier assets such as the Rupee.
Separately India is set to ban sugar exports for the first time in over seven years as a lack of rain resulted in a reduced cane yield. The average yield has been 50% below average this year. The move comes as local sugar prices had jumped to a 2 year high and as India’s inflation hit a 15 month high.
The US Dollar is falling against the Rupee but is rising against its major peers. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades at +0.37% at the time of writing at 103.72, paring losses from the previous session.
The USD fell yesterday after US business activity data showed that the US economy was stalling. The composite PMI fell to 50.4 in August down from 52 in July, posting the 4eakest growth since February as demand for new business in the service sector contracted.
The data pours cold water on the narrative of a resilient economy with a solid labour market and consumer spending data fueling bets of a soft landing lifting treasury yields to a 16 year high at the start of the week.
Questions over the health of the US economy come as the Federal Reserve’s Jackson Hole Symposium kicks off today with several Fed officials set to speak ahead of Fed Chair Powell tomorrow.
US jobless claims and durable goods data are also due to be released.