- Indian Rupee (INR) is rising after losses yesterday
- India’s domestic equities rose for a 5th day
- US Dollar (USD) is falling versus its major peers
- US Q1 GDP slows by more than expected
The US Dollar Indian Rupee (USD/INR) exchange rate is falling after yesterday’s losses. The pair fell -0.05% in the previous session, settling on Wednesday at 83.25. At 19:00 UTC, USD/INR trades -0.06% at 83.27 and is trading in a range of 83.25 to 83.40.
The Rupee is capitalizing on the weaker U.S. dollar as it remains stable at the start of the Indian election, holding up better than other Asian currencies in April. This month, the rupee has depreciated 0.6% against the dollar.
The main economic challenge that the Indian government faces after the election is unemployment. According to economists polled, the Indian economy is expected to grow by a solid 6.5% this year.
Meanwhile, Indian domestic equities rose for a fifth straight session on Thursday, boosted by post-earning gains in Axis Bank and Nestle India.
The Nifty 50 closed 0.75% higher on the Sensex added 0.66% time.
The US Dollar is falling across the board. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades at -0.29% at the time of writing at 105.55 after losses yesterday.
The US dollar is rising as investors digest weaker-than-expected GDP data and look ahead to tomorrow’s inflation figures.
US Q1 GDP fell more than expected to 1.6% from January to March. This was down from 3.4% in the final quarter of 2023. Economists expected GDP to ease to 2.5%.
However, the core PCE across Q1 was hotter than expected, rising to 3.7%, up from 2%, and ahead of forecasts of 3.4%.
The hotter-than-expected inflation puts a greater emphasis on tomorrow’s core PCE figures for March. Economists expect core PCE to increase to 2.6% year on year, down from 2.8%. On a monthly basis, core PCE is expected to hold steady at 0.3%.
The data comes as investors continue to weigh up data and assess when the Federal Reserve may start cutting interest rates. The market is only fully pricing in one rate cut this year, which is down from several rate cuts expected at the start of the year.
