- Indian Rupee (INR) falls after gains yesterday
- The US and & India are working on a trade deal
- US Dollar (USD) rises versus major peers
- US factory orders fall & JOLTS job openings rise
The US dollar-to-Indian rupee (USD/INR) exchange rate is rising after yesterday’s losses. The pair fell 0.2% in the previous session, settling on Monday at 85.35. At 19:30 UTC, USD/INR traded 0.3% higher at 85.60 and traded in a range of 85.36 to 85.69.
The Indian rupee is falling lower despite progress in trade negotiations between the US and India. Expectations are rising that a deal could be agreed upon soon as both sides push to reach a conclusion ahead of the July deadline.
U.S. Commerce Secretary Howard Lutnick sounded confident that an agreement could be reached quickly while highlighting the great relationship between the two countries.
Meanwhile, Bank of America predicts that Indian markets will be among the top three in Asia to attract foreign inflows once tariff-related uncertainties ease. The bank considers the rupee and local currency-denominated bonds to benefit the most. It was noted that India has many growth drivers that other markets do not have.
The US Dollar is rising across the board. The US Dollar Index, which measures the greenback against a basket of major currencies, is rising 0.5% to 99.21, recovering from losses yesterday.
The U.S. dollar is rising on Tuesday as Federal Reserve officials support patience with rate cuts in the face of trade uncertainty and after US data.
US factory orders fell more than expected in April, dropping 3.7% month over month, ahead of the 3% forecast. Manufacturing, which accounts for 10.2% of the economy, has been impacted by Trump’s aggressive tariff policies.
Yesterday, the ISM and factoring PMI showed that manufacturing contracted for a third straight month, and suppliers took the longest time in almost three years to deliver input to factories.
Meanwhile, job openings unexpectedly rose in April, and this is an encouraging sign that hiring picked up.
Job openings rose by 7.39 million, up from the 7.28 million reading in March. Expectations had been for a decline to 7.10 million openings. Delving deeper into the figures, openings in manufacturing, leisure, and hospitality fell, while openings in industries such as professional and business services and healthcare increased.
The data comes ahead of Friday’s nonfarm payroll, which will provide further clues into the health of the US economy.
