- Indian Rupee (INR) was unchanged on Friday
- Indian GDP rose to 8.2% in the July–September quarter
- The US Dollar (USD fell versus major peers
- Fed rate cut expectations keep climbing
The US dollar-to-Indian rupee (USD/INR) exchange rate ended Friday unchanged. The pair rose 0.23% in the previous session, settling on Thursday at 89.36. At 21:30 UTC on Friday, the pair settled -0.01% at 89.35. The pair fell by -0.33% over the week.
The Indian rupee was unchanged on Friday despite data showing that the Indian economy grew at its fastest pace in 18 months in the July to September period. GDP growth was 8.2% in the quarter ending September against forecasts of 7.3% and an expansion of 7.8% in the previous quarter.
Strong growth in the world’s fifth-largest economy could boost Prime Minister Narendra Modi’s standing domestically and give him room to negotiate a deal with the US following the imposition of 50% tariffs on Indian goods being imported into the US.
The Indian government has cut consumer taxes on hundreds of items and implemented long-delayed labour reforms as it tries to keep the domestic economy strong amid global economic uncertainties.
The US Dollar fell across the board on Friday. The US Dollar Index, which measures the greenback against a basket of major currencies, fell -0.14%, to settle at 99.46. The USD fell by 0.73% over the week, its worst weekly performance since early August.
The US dollar fell last week amid rising expectations that the Federal Reserve would cut interest rates again in December.
Weak data, including softer-than-expected retail sales, a sharp drop in consumer confidence to the slowest level since April, lifted rate-cut expectations. The weak data combined with more dovish commentary from Federal Reserve policymakers, such as Fed Governor Christopher Waller and New York Fed President John Williams, saw the market lift rate cut expectations to 85%,
Adding to rate cut expectations, White House economic adviser Kevin Hassett is a frontrunner for the position of Federal Reserve chair. He supports a looser monetary policy stance, so if selected by Trump, he could fuel expectations for further rate hikes next year.