- Indian Rupee (INR) falls towards an all-time low
- FIIs sell out of Indian equities on trade deal worries
- The US Dollar (USD) is falling versus major peers
- Trump withdrew trade tariffs and calmed Greenland fears
The US dollar-to-Indian rupee (USD/INR) exchange rate is rising for a sixth consecutive day. The pair rose 0.47% in the previous session, settling on Wednesday at 91.54. At 21:30 UTC on Thursday, the pair is rising 0.02% at 91.56.
Indian rupee is extending its decline, trading around its all-time low of 92.00 reached on Wednesday, amid ongoing selling pressures in the Indian stock market from overseas investors, which keeps the Indian currency on the back foot.
Foreign institutional investors continued to sell their stakes in the Indian equity market due to the absence of a US-India trade deal. India continues to experience 50% tariffs on some imports into the US.
Foreign institutional investors have remained net sellers in 13 of the 14 trading days this month.
Attention will now turn to PMI data for January, which will be released tomorrow and could give fresh clues about the economy ahead of the 20262027 fiscal budget announcement on February 1st
The US Dollar is rising against the Rupee but falling across the board. The US Dollar Index, which measures the US dollar against a basket of major currencies, is down 0.45% to 98.36.
The US dollar is falling further on Thursday after president trump drops tariff threats and ruled out taking Greenland by fools helping to calm a nervous market
The US dollar is falling further on Thursday after President Trump dropped tariff threats and ruled out taking Greenland by force, helping to calm a nervous market.
Attention also turns back to U.S. economic data and expectations of a Fed rate cut. Call PC, the Fed’s preferred gauge for inflation, remains unchanged at 2.8% year on year in November. Meanwhile, consumer spending, which accounts for more than 2/3 of economic activity, rose 0.5% in line with forecasts. Solid consumer spending will likely keep the economy on track for a third straight quarter of solid growth.
Meanwhile, US GDP data showed the economy grew at an annualised rate of 4.4%, the fastest pace in two years. It was also one of their strongest back-to-back quarters for growth since 2021.
The data support the view that the Fed will leave interest rates unchanged in January.
