• Indian Rupee (INR) is falling for a 2nd day
  • Indian GDP rises to a yearly high
  • US Dollar (USD) rises after inflation ticks higher
  • US jobless claims fall to 228k

The US Dollar Indian Rupee (USD/INR) exchange rate is rising for a second straight day. The pair rose +0.04% in the previous session, settling on Wednesday at 82.60. At 14:30 UTC, USD/INR trades +0.07% at 83.66 and trades in a range of 82.57 to 82.78.

The Rupee is showing resilience against the USD after upbeat Indin GDP data. Figures showed that the Indian economy grew 7.8% in the April to June quarter, its fastest pace of growth in a year. This was up from 6.1% growth in the previous quarter and confirms that India is one of the fastest-growing major economies, particularly given the slowdown being seen in China.

Meanwhile, oil prices were pushing higher for a sixth straight day as supply concerns overshadowed demand outlook worries. WTI trades over 1% higher at the time of writing after EIA data showed a 10.6 million barrel draw, much larger than expected and as Saudi Arabia is increasingly expected to extend its 1 million barrel a day output cut for another month.

The US Dollar is rising across the board. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades at +0.5% at the time of writing at 103.67, snapping a 3-day winning run.

The USD is pushing higher as investors digest the latest round of scene-setting data ahead of the Federal Reserve’s September FOMC meeting.

US core PCE, the Federal Reserve’s preferred measure for inflation, rose to 4.2% YoY in July, up from 4.1% and in line with expectations. Meanwhile, US spending surged 0.8%, up from 0.5% but income rose a less than expected 0.2%.

Separately, US jobless claims unexpectedly fell to 228k, down from 232k and below the 235k forecast. The data comes after US jobs data earlier in the week pointed to a slight cooling in the jobs market and ahead of the US non-farm payroll report tomorrow.