- Indian Rupee (INR) tracks Asian currencies lower
- CSI 300 hits a 5 year low
- US Dollar (USD) falls versus major peers
- US GDP & inflation data are due this week
The US Dollar Indian Rupee (USD/INR) exchange rate is rising after losses in the previous session. The pair fell -0.03% yesterday, settling on Monday at 83.10. At 10:00 UTC, USD/INR trades +0.05% at 83.13 and trades in a range of 83.06 to 83.15.
The Indian Rupee trades lower as it tracks its Asian peers southwards despite reports of a potential support package in China as the authorities consider rescuing its plunging stock market.
Chinese authorities are considering a package of measures of around 2 trillion yuan ( $278 billion) as part of a stabilization fund to buy shares.
The deliberations come as Chinese authorities attempt to stem a sell-off that has sent the CSI 300 index to a five-year low this week. However, historically, state buying alone has had limited success in turning market sentiment around.
The US Dollar is rising against the Rupee but is falling versus its major peers. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades -0.11% at the time of writing at 103.21, after gains in the previous session.
The US dollar is falling versus its major peers but continues to hover around a one-month high.
Investors are trading cautiously ahead of key U.S. economic data later in the week, which includes the fourth quarter GDP reading and core PCE, the Federal Reserve’s preferred gauge for inflation.
The weaker US dollar comes after the greenback gained almost 1% last week after stronger-than-forecast U.S. economic data and hawkish comments from Federal Reserve officials pushed back expectations of a March rate cut.
According to the CME fed watch tool, the market is now pricing in less than a 50% probability of the Federal Reserve cutting interest rates in March. This probability is half what it was at the end of last year.
