- Indian Rupee (INR) holds steady for a second day
- India’s CPI is expected to ease slightly to 4.8% in April
- US Dollar (USD) rises versus its major peers.
- Fed speakers are in focus
The US Dollar Indian Rupee (USD/INR) exchange rate is holding steady for a second straight day. The pair held steady at -0.01% in the previous session, settling on Tuesday at 83.47. At 19:00 UTC, USD/INR trades -0.01% at 83.46 and trades in a range of 83.45 to 83.47.
The Indian Rupee is holding steady as Indian elections continue and amid expectations that Indians inflation is likely to have eased in April.
Economists expect India’s consumer price inflation to cool to 4.8% in April, just below the March rate, as food inflation remains sticky. Food prices, which account for nearly half of the consumer price index basket, have remained elevated at around 8%, squeezing household budgets.
As parts of India experienced a heat wave, food prices continued to pose additional risks to inflation.
The US Dollar is holding steady against the Rupee but rising against its major peers. The US Dollar Index, which measures the greenback against a basket of major currencies, trades at 0.14% at the time of writing at 105.55, after gains in the previous session.
Domino’s icon The US dollar is pushing higher for a second straight day, boosted by hawkish comments from Federal Reserve officials.
Overnight, Minneapolis Fed president Neel Kashkari questioned whether interest rates were restrictive enough to bring inflation back down to 2%, raising the likelihood of the Fed leaving rates untouched until next year.
Meanwhile, federal Richmond Fed president Tom Barkin warned that finishing the battle against inflation will likely require a hit to demand. His comments come after inflation increased in the US across the first quarter of the year. He seemed optimistic that the current range of 5.25% to 5.5% would be sufficient to cool inflation back to the 2% target.
This week has been quiet as far as economic data is concerned, and as a result, attention has remained on Fed speakers.
Tomorrow, more Fed speakers will be under the spotlight, as well as US jobless claims data.
