- Indian Rupee (INR) is falling after gains yesterday
- Indian inflation is expected to ease to around 3.5%
- US Dollar (USD) rises versus its major peers
- US Presidential election vote is tonight
The US Dollar Indian Rupee (USD/INR) exchange rate is rising after losses yesterday. The pair fell -0.07% in the previous session, settling on Monday at 83.92. At 19:00 UTC, USD/INR trades +0.05% at 83.96 and trades in a range of 83.95 to 84.19.
The Indian rupee Is edging lower has attention turns towards inflation data and as oil prices drop.
Indian inflation is expected to have held below the Reserve Bank of India’s 4% medium-term target for a second straight month in August as food prices continue to moderate.
Food makes up almost half the inflation basket, and prices have been significant in the last two months, although erratic monsoon rains could harm quote peeled sand and push prices higher in the months ahead. Economists expect engine inflation to be 3.5% in August from a year earlier, down modestly from the three-point 5.4% in July. The data is due out on Thursday.
The US Dollar is rising against the Rupee but falling against major peers. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades at +0.07% at the time of writing at 101.62, after gains yesterday.
The U.S. dollar is heading higher for a second straight day amid a recovery ahead of US inflation data tomorrow.
US CPI is the final piece of the jigsaw ahead of the Federal Reserve’s interest rate decision on September 17th and 18th next week. The market has reined in expectations of an outsized rate hike of 50 basis points and is pricing in a 75% probability that the Fed will cut rates by 25 basis points.
Ahead of tomorrow’s key inflation data, attention will be on the US presidential election debate, which takes place later this evening.
Democratic nominee and vice president Kamala Harris will face republican nominee candidate Donald Trump for the first time, with just two months to go until Americans vote.
Americans will be closely monitoring comments regarding tax, tariffs, and spending, as worries of a US recession linger.
