- Indian Rupee (INR) falls for a second day
- Oil prices have risen to around a 5-month high
- US Dollar (USD) rises after hot inflation
- US CPI rose to 3.5% YoY
The US Dollar Indian Rupee (USD/INR) exchange rate is falling for a fourth straight day. The pair fell 0.03% in the previous session, settling on Monday at 83.27. At 17:00 UTC, USD/INR trades -0.09% at 83.20 and trades in a range of 83.17 to 83.34.
The Rupee and other Asian currencies fell against the USD after hot inflation data. The Rupee fell despite the Sensex closing 0.75% higher.
Meanwhile, oil prices continue to trade at around a 5-month high, boosted by concerns over tight supply. High oil prices are bad news for India, which imports over 80% of its oil requirements.
The US Dollar is rising across the board. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades at +0.01% at the time of writing at 104.11 after losses in the previous session.
The US dollar is shot higher across the board after stronger than it hotter than expected. US inflation data cast doubts over whether the Federal Reserve will be cutting interest rates anytime soon.
The consumer price index rose to 3.5% year over year in March, up from 3.2% year over year in February. This was ahead of the 3.4% that economists had forecast.
Meanwhile, core inflation, which excludes items such as food and fuel, eased to 3.8%, defying expectations of a full increase to 3.7%.
The hot inflation data comes after a strong jobs report on Friday and signs of the super bust in the U.S. economy, which have raised concerns about the Federal Reserve’s ability to cut interest rates soon.
The market has lowered rate cut expectations for 2024 to just two rate cuts this year. With the first rate cut being fully priced in in September. Just a few weeks ago, the market was pricing in three 25 basis point rate cuts this year with the first-rate cut being fully priced in in July.
