- Indian Rupee (INR) falls after gains yesterday
- Indian GDP is due tomorrow
- US Dollar (USD) rises against its major peers
- Trump trade announcement overshadows weaker economic data
The US dollar-to-Indian rupee (USD/INR) exchange rate rose after small losses yesterday. The pair fell -0.02% in the previous session, settling on Wednesday at 87.11. At 17:00 UTC USD/INR trades 0.2% higher at 87.27 and is in a range of 87.1 to 87.51.
The rupee ended little changed on Thursday, with weakness in Asian currencies owing to US tariff uncertainties and aggressive intervention by the Indian Central Bank.
The rupee hit a more than two-week low early in the session but then strengthened following an aggressive intervention by the Reserve Bank of India before once again giving up gains.
Meanwhile, Indian stocks ended flat on Thursday in cautious trade amid a monthly derivatives settlement and ahead of tomorrow’s GDP data. The GDP is expected to show that economic growth rebounded in the December quarter after slower growth in the July to September quarter.
The US Dollar is rising across the board. The US Dollar Index, which measures the greenback against a basket of major currencies, is increasing 0.7% on Thursday, adding to yesterday’s gains.
The U.S. dollar rose on Thursday and is on track for its largest daily percentage increase in almost two months. The surge higher comes after U.S. President Donald Trump’s latest trade tariff comment overshadowed signs of slower economic growth.
The US dollar initially paired gains following data showing weekly initial job losses rising by 22,000 to 242,000, which was above the 221,000 economists expected.
Meanwhile, the US GDP rose at 2.4% annualised in the final quarter of last year after growing at 3.1% in the July to September quarter.
Still, the US dollar rebounded rapidly after Trump said that 25% trade tariffs on Mexican and Canadian goods would go into effect on March the 4th as scheduled.