- Indian Rupee (INR) rose before giving up gains
- India’s domestic equities rose for a 4th day
- US Dollar (USD) is rising versus its major peers
- US durable goods orders beat forecasts
The US Dollar Indian Rupee (USD/INR) exchange rate has been rising since yesterday’s losses. The pair was flat at -0.11% in the previous session, settling on Tuesday at 83.26. At 19:00 UTC, USD/INR trades +0.07% at 83.32 and is trading in a range of 83.26 to 83.42.
The Indian rupee has risen to a two-week high versus the US dollar, boosted by a recovery in risk appetite that helped lift Asian currencies across the board.
The rupee traded at a high of 83.26, its strongest level since April 10, although it couldn’t maintain that strength across the session.
Meanwhile, domestic equities rose, boosted by metals and financials as investors shifted their focus to key earnings from the Nifty 50 companies this week.
Blue chip companies have gained for a fourth straight session amid a global rebound in risk sentiment as tensions in the Middle East ease.
Company results will likely be the main focus of the subsequent two to three sessions for Indian equities. Rising equities and strong foreign investment can help boost the Rupee.
The US Dollar is rising across the board. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades at +0.17% at the time of writing at 105.86 after losses yesterday.
The US dollar is pushing higher, recouping some of yesterday’s losses after stronger-than-expected US data offset yesterday’s weaker-than-expected PMI figures.
USD fell yesterday after PMI data fell unexpectedly, supporting a view that the U.S. economy could be slowing and inflationary pressures easing. This could, in turn, allow the Federal Reserve to cut interest rates before the end of the year.
However, today, US durable goods orders came in above expectations, rising 2.6% month on month, up from 0.7% in February and ahead of analysts’ expectations of 2.5%. The data once again raised concerns that the US economy could be growing more strongly than forecast.
Attention will now turn to US GDP data, the first reading for Q1 tomorrow, which is expected to show that the economy grew at a slightly slower pace of 2.5% annualized, down from 3.4%.
US jobless claims data will also be in focus. Economists expect a slight rise to 214K, up from 212 K. Stronger-than-expected data could boost the US dollar.
