- Indian Rupee (INR) gains after recent losses
- The RBI is expected to cut rates
- US Dollar (USD) falls versus major peers
- US jobless claims unexpectedly rise
The US dollar-to-Indian rupee (USD/INR) exchange rate is falling after two days of gains. The pair rose 0.19% in the previous session, settling on Wednesday at 85.87. At 19:30 UTC, USD/INR traded -0.09% lower at 85.80 and traded in a range of 85.57 to 85.91.
The Indian Rupee rose on Thursday, tracking domestic equities higher, as attention turned to the Reserve Bank of India’s interest rate decision tomorrow.
Equities rose led by heavyweight Reliance Industries and rate-sensitive sectors, including financials, ahead of the RBI meeting, where the central bank is widely expected to cut interest rates.
The RBI is expected to reduce rates by 25 basis points for a third straight meeting on Friday as inflation is well below the RBI’s 4% target and there is a growing need to support economic growth..
The US Dollar is falling across the board. The US Dollar Index, which measures the greenback against a basket of major currencies, is falling 0.02% to 98.76 after yesterday’s losses.
The U.S. dollar is falling after U.S. economic data raised concerns over the economy’s outlook and as Trump and China’s XI agreed to more trade talks.
US jobless claims unexpectedly rose to their highest level since October, adding to signs that the US jobs market is cooling rapidly. Applications for US unemployment benefits rose by 8247 thousand in the week ending May 31st, which was kind of expectations of 235,000
The data comes after ADP private payrolls rose by just 37,000 yesterday, its slowest pace in multiple years.
The figures come ahead of tomorrow’s US nonfarm payroll report, which is expected to show that just 130,000 jobs were added in May, down from 177,000 in April. Weaker-than-forecast data tomorrow could pull the USD lower.
Separately, Trump and Chinese President Xi Jinping had a phone call on Thursday, which is confirmed by both sides, coming after the Chinese president was called a tough negotiator by Trump and it is hard to make a deal with