- Indian Rupee (INR) rises from a record low yesterday
- Indian economy is expected to grow 6.8% to 7.2%
- The US Dollar (USD) is falling versus major peers to multi-year lows
- US jobless claims ease to 209k
The US dollar-to-Indian rupee (USD/INR) exchange rate is falling after gains yesterday. The pair rose 0.62% in the previous session, settling on Wednesday at 92.04. At 21:30 UTC on Thursday, the pair is falling -0.27% at 91.79.
The Indian rupee is rising, recovering yesterday’s record low as the Reserve BANK OF India likely stepped in to support the currency.
The Indian economy is forecast to grow 6.8%-7.2% in the fiscal year starting in April. Solid growth is expected amid strong domestic demand and even as global volatility weighs on the outlook.
However, this also represents a slowdown from the 7.4% growth projected for this fiscal year.
Meanwhile, gains could be limited amid a sharp jump in oil prices after Trump threatened Iran with military action, saying the time for reaching a nuclear agreement was running out.
Oil prices rose to a four-month high of $65 a barrel on fears that supply could be affected if military action starts in the region.
The US Dollar is falling across the board. The US Dollar Index, which measures the US dollar against a basket of major currencies, is down 0.24% to 96.26, close to its four-year low.
The US dollar index is showing some resilience, recovering from earlier lows on hopes that a U.S. government shutdown could be avoided.
Comments from Senate Majority Leader Thune indicated that talks on the government shutdown were moving in the right direction.
Meanwhile, November factory orders posted their biggest increase in six months, which added support to the dollar
On the data front, US jobless claims remain relatively low, falling by 1,209 K to 210K from the previous week.
Any gains in the US dollar are likely to be limited, given the political uncertainty from the Trump administration after threats of additional tariffs at the start of the week against Canada.