• Indian Rupee (INR) falls after gains last week
  • Importer demand for dollars weighed on the Rupee
  • US Dollar (USD) rises after gains last week
  • US inflation data is in focus

The US Dollar Indian Rupee (USD/INR) exchange rate is rising after losses last week. The pair fell -0.1% in the previous week, settling on Friday at 83.10. At 12:00 UTC, USD/INR trades +0.04% at 83.13 and trades in a range of 83.05 to 83.19.

The Rupee changed little on Monday owing to strong dollar demand from importers and amid a relatively risky mood in the border market.

Asian currencies traded range bound at the start of the new week, with domestic equities in Asia under pressure. Chinese and Hong Kong stocks were notable decliners; meanwhile, the Sensex fell almost 1%, ending the day 0.93% lower, and the Nifty 50 also fell 0.91%.

On a more positive note, oil prices traded under pressure after Saudi Arabia lowered its price for oil to Asian importers. West TX intermediate rates 2.8% lower.

The US Dollar is rising across the board. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades +0.06% at the time of writing at 102.46 after gains last week.

The US dollar is rising, adding to gains from the previous week as investors continue to weigh up Friday’s payroll report.

The closely watched report showed that the number of jobs created rose to 216,000 in December, which was well ahead of 150,000. However, the previous two months or a downward revision of 71,000 suggests that the report wasn’t quite as strong as initially he had saved.

Even so, the US dollar has managed to hold on to last week’s strong gains as investors reined in expectations of interest rate cuts this year.

The market is now pricing in a 60% probability of a rate cut in March, which was down from 75% at the end of December.

Picking had this week is a key week for the US dollar with the release of inflation data, which will provide further clues on when the Federal Reserve may cut right.