- Indian Rupee (INR) is falling after 2-days of losses
- Indian composite PMI was 61.7 in May
- US Dollar (USD) rises versus its major peers
- FOMC minutes & strong data lift the USD
The US Dollar Indian Rupee (USD/INR) exchange rate is rising after two days of losses. The pair fell -0.04% in the previous session, settling on Wednesday at 83.22. At 19:00 UTC, USD/INR trades +0.07% at 83.27 and trades in a range of 83.20 to 83.31.
The Indian rupee slipped against the stronger U.S. dollar as investors digested a mixed batch of Indian PMI data.
The manufacturing PMI dropped to 58.4 in May, down from 58.5 in April, while the services PMI improved. Business activity as a whole expanded robustly thanks to the dominant service sector and rising exports. The composite PMI was 61.7 in May, up from 61.5 in April, marking the 34th month above the 50 level that separates growth from contraction.
The services PMI index rose to a four-month high of 61.4, up from 60.8 in April. Thanks to robust demand and new business growing at the fastest pace since January
The US Dollar is rising across the board. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades at +0.03% at the time of writing at 104.94, rising for a fourth straight day.
The US dollar is heading higher after hawkish FOMC minutes and stronger-than-expected data.
The minutes from the Latest FOMC meeting showed that policymakers are concerned about stickier-than-expected inflation, which was taking longer than anticipated to reach the 2% target. Some policy members even supported raising interest rates further to tame inflation.
The minutes come after a string of Federal Reserve speakers this week warned that interest rates should stay high for longer to cool inflation.
Meanwhile, US PMI data was also stronger than expected, and jobless claims showed signs of a solid labor market.
U.S. business activity, as measured by the composite PMI, jumped to 54.4, up from 51.3, expanding at its most in two years, while prices paid also picked up.
