- Indian Rupee (INR) is falling to its lowest level since late June
- Domestic stocks fall
- US Dollar (USD) is rising versus major peers
- US retail sales and jobless claims beat forecasts
The US dollar-to-Indian rupee (USD/INR) exchange rate is rising after two days of losses. The pair rose +0.18% in the previous session, settling on Wednesday at 85.88. At 17:30 UTC, USD/INR trades 0.18% higher at 86.02 and trades in a range of 85.78 to 86.13.
The Indian rupee fell on Thursday, dropping below a key support level to reach a three-week low, pressured by a stronger dollar, despite export dollar sales and portfolio inflows helping to limit the losses.
Dollar sales from exporters and foreign banks on behalf of custodial clients have limited the rupee losses.
Domestic stocks ended the session lower on Thursday, with the Sensex and the Nifty 50 closing 0.4% lower each. Technology stocks proved to be the main drag after Tech Mahindra missed its revenue estimates.
Separately, oil prices rose for a second straight day after US inventories plunged by significantly more than expected.
The US Dollar is rising across the board. The US Dollar Index, which measures the greenback against a basket of major currencies, is rising 0.25% to 98.11, marking the sixth straight day of gains.
The US dollar is pushing higher, rising to a 3 1/2-week high on signs that the US economy is performing better than expected, which could keep the Federal Reserve from cutting interest rates.
US retail sales rose by more than expected, up 0.5% month on month in June, ahead of the 0.1% growth expected. Meanwhile, jobless claims unexpectedly fell by 7000 to 221,000. The July Philadelphia Fed business outlook survey rose to a five-month high.
Federal Reserve Governor Krugler stated that he considered it appropriate for the central bank to maintain steady rates for some time.
While trade tariffs remain uncertain, June import prices came in weaker than expected, rising just 0.1% month-on-month, while export prices were expected to rise 0.5%.
The Federal Reserve has not cut interest rates yet this year, and expectations for a September rate cut are down to 52% from 65% just a week ago.
