- Indian Rupee (INR) is holding steady
- Oil prices hover around a 2-month high
- US Dollar (USD) is falling against its major peers
- Weak data has fueled Fed rate cut expectations
The US Dollar Indian Rupee (USD/INR) exchange rate is unchanged on Thursday after modest gains yesterday. The pair rose 0.02% in the previous session, settling on Wednesday at 83.52. At 18:00 UTC, USD/INR trades 0.00% at 83.52 and is in a range of 83.55 to 83.47.
The Rupee has struggled to capitalize on the weaker USD as oil prices remain elevated. Oil prices have risen to a 2-month high amid optimism surrounding strong oil demand across the summer driving period and on a weaker USD, which makes buying oil cheaper for those purchasing with other currencies.
The US Dollar is flat against the Rupee but falling versus its major peers. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades -0.18% at the time of writing at 105.11, marking its third straight day of losses.
U.S. dollar is falling in quiet trade as the US stock market and treasury market remain closed in observance of the Independence Day public holiday
The U.S. dollar has fallen in recent sessions after weak data raised expectations that the Federal Reserve could start cutting interest rates sooner.
Data yesterday showed that continuous claims jobless rose for a ninth straight week, marking the longest rising streak since 2018.
Meanwhile, the US services PMI contracted at its fastest pace in four years, raising concerns that the US economy is slowing, and labor demand is weak.
Attention will now turn to US non-farm payrolls data tomorrow, which is expected to show that job creation slowed to 190,000, down from 272,000 in May. Average earnings are expected to slow slightly to 0.3%, down from 0.4%.
A weak nonfarm payroll report could increase expectations that the Federal Reserve will cut interest rates sooner. The market is currently pricing in a 69% probability that the Fed will cut rates in September, up from 56% at the start of the week.
