- Indian Rupee (INR) is falling for a 4th day
- The IMF maintains growth of 7% this year in India
- US Dollar (USD) is rising versus its major peers
- USD is on track for its strongest October in over a decade
The US Dollar Indian Rupee (USD/INR) exchange rate is rising for a fourth straight day. The pair rose 0.01% in the previous session, settling on Monday at 84.07. Today, at 22:00 UTC, USD/INR is up +0.04% at 84.10 and traded in a range of 84.06 to 84.19.
The Indian rupee is falling lower despite the International Monetary Fund maintaining its global growth forecast for 2024 and 2025 at 3.2%. The IMF, in its latest world economic outlook report, also kept India’s growth projections unchanged at 7% for 2024 and 6.5% for 2025, as pent-up demand from the pandemic has been exhausted.
According to the IMF, China, the largest economy in Asia and the world’s second-largest economy, is expected to grow by 4.5% in 2024, a downward revision.
The US Dollar is rising across the board. The US Dollar Index, which measures the greenback versus a basket of major currencies, is rising 0.07%, trading at 104/.08 after gains yesterday.
The US dollar is enjoying its third weekly when it is on track for its largest October gains in over a decade.
The U.S. dollar index has risen about 2.5% so far in October, marking its best monthly performance since September 2022.
The U.S. dollar has been boosted by several bullish factors, including high U.S. Treasury yields, safe haven flows amid geopolitical tensions, and upbeat data that points to a resilient U.S. economy.
This week has been quiet as far as economic data is concerned. However, plenty of Fed speakers see more interest rate cuts coming, although there is a lack of consensus over the timing of such cuts.
The market is pricing in a 90% chance of the Federal Reserve cutting rates by 25 basis points in the November meeting.