- Indian Rupee (INR) falls for a third day
- Domestic equities see $ trillion in value wiped out
- US Dollar (USD) rises against its major peers
- US PPI eases to 3.2% from 3.7%
The US dollar-to-Indian rupee (USD/INR) exchange rate is falling for a third straight day. The pair rose 0.03% in the previous session, settling on Tuesday at 87.15. At 19:00 UTC USD/INR trades -0.18% lower at 86.99 and is in a range of 86.92 to 87.25.
Indian rupee fell again on Thursday as Indian equities continued to drop lower. The slump in Indian equities has been the longest running in almost 3 decades, wiping out around $1 trillion in market capitalization and threatening to slow growth in the world’s fifth largest economy.
Uncertainty about Donald Trump’s policies’ impact on global growth has added to worries over weak domestic earnings and persistent foreign outflows.
This comes as the economy is expected to grow at its slowest pace in four years amid weak domestic demand and cooling consumer spending.
The US Dollar is falling against the Rupee but rising against its major peers. The US Dollar Index, which measures the greenback against a basket of major currencies, is rising 0.22% on Thursday, marking a second straight day of gains.
The US dollar is rising but remains close to a five-month low, which it reached earlier this week amid rising concerns over the outlook for the US economy as Trump’s trade wars ramp up.
On Wednesday, Trump applied 25% tariffs on steel and aluminium imports and threatened 200% trade tariffs on European wine.
On the data front, US wholesale inflation as measured by PPI slowed to 3.2% year on year, down from January’s 3.7%, which was also below expectations of 3.3%. The data came after CPI inflation yesterday was also cooler than expected at 2.8%.
Then I had University of Michigan sentiment will be watch closely tomorrow for further signs deteriorating confidence which could point to slower economic growth.
