• Indian Rupee (INR) after gains yesterday
  • India’s election is later in the week
  • US Dollar (USD) rises versus its major peers
  • Fed Chair Powell is due to speak

The US Dollar Indian Rupee (USD/INR) exchange rate is rising after small losses yesterday. The pair fell 0.07% in the previous session, settling on Monday at 83.48. At 17:00 UTC, USD/INR trades +0.23% at 82.93 and trades in a range of 83.46 to 83.69.

The Indian rupee has fallen to a record low amid risk of trade as investors continue assessing geopolitical tensions in the Middle East and worries that the Federal Reserve will delay cutting interest rates.

The Rupee hit a record low but averted further losses amid likely intervention by the central bank.

Given that the Reserve Bank of India has record foreign exchange reserves, it is likely to intervene to curb currency volatility.

The fluctuations in the rupee come ahead of the Indian general election on April 19th, in which Prime Minister Narendra Modi seeks a third consecutive term in power.

The US Dollar is rising across the board. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades at +0.13% at the time of writing at 106.30, extending gains for a second day.

The US dollar has risen to its highest level since October versus its major peers as it tracks U.S. Treasury yields higher.

The dollar and yields are rising on expectations that the Federal Reserve will keep interest rates high for longer. Treasury yields rose above 4.6% for the first time in five months a day after US retail sales came in stronger than expected, supporting a more hawkish Fed.

US retail sales rose by 1.7% month over month in March, up from 0.6% in February. This highlights the strength of the US consumer, which keeps fueling the US economy.

There is no major U.S. economic data to be released today; however, attention will be on a speech by Federal Reserve Chair Jerome Powell. The market will be watching for any clues over the future path for interest rates