- Indian Rupee (INR) falls after losses last week
- Domestic equities fall
- US Dollar (USD) rises against its major peers
- US inflation data is due on Wednesday
The US Dollar Indian Rupee (USD/INR) exchange rate is rising after gains last week. The pair rose 0.12% in the previous week, settling on Friday at 84.66. On Monday at 19:30 UTC, USD/INR trades +0.21% at 84.84 and trades in a range of 84.67 to 84.91.
The Ruppe was slightly weaker on Monday, pulled lower by a decline in its Asian peers amid a stronger U.S. dollar and despite China pointing to looser monetary policy in the coming year to support the economy.
Instead, Asian currencies fell as the political uncertainty in South Korea heightened. The Won fell a further 1% due to the country’s deepening political turmoil.
The Indian economic calendar is quiet today. However, inflation data will be the focus of this week.
Meanwhile, the Indian stock market closed lower and was dragged southwards by consumer and auto stocks—today’s losses come after three straight days of gains.
The US Dollar is rising against its major peers. The US Dollar Index, which measures the greenback against a basket of major currencies, trades +0.03%, trading at 106.09 on Monday after gains across the previous week.
The U.S. dollar is holding steady, booking very modest gains on Monday as investors turn their attention to November’s inflation data. Inflation, as measured by the consumer price index, is due to be released on Wednesday and is expected to show that annual headline inflation rose to 2.7%, up from 2.6% in October.
The data comes after the US nonfarm payroll report on Friday showed that 227k jobs were added in November, well ahead of the 200k that was forecast. However, the unemployment level also rose to 4.2% up from 4.1%
the market is pricing in 85% probability that the Fed will cut interest rates by 25 basis points in the December meeting. It then expects the Fed to cut rates once a quarter across 2025.