- Indian Rupee (INR) rises after two days of losses
- India -EU trade talks are in focus
- The US Dollar (USD) is rising versus major peers
- JOLTS job openings rose to 7.67 million
The US dollar-to-Indian rupee (USD/INR) exchange rate is falling after two days of losses. The pair fell 0.21% in the previous session, settling on Monday at 90.13. At 21:30 UTC on Tuesday, the pair is falling -0.26% at 89.89.
The Indian rupee gained ground on Tuesday after India and the European Union agreed to work toward a long-pending trade deal at the earliest opportunity. The Indian commerce minister met an EU delegation led by the European commissioner for trade and economic security, and the two sides continued efforts to reach a deal on Monday.
Both sides have been pushing to close a broad trade deal after a meeting between EC President Ursula von der Leyen and Prime Minister Modi, where they agreed at the start of the year to fast-track negotiations with a year-end target.
However, despite political will, many issues remain unresolved.
The US Dollar is falling against the Rupee but is rising versus its major peers. The US Dollar Index, which measures the greenback against a basket of major currencies, is +0.15%, to 99.23.
The USD is rising after better-than-expected jobs data pointed to a still resilient labour market ahead of the Federal Reserve’s right decision tomorrow.
Data showed that US job openings increased modestly in October, but hiring remained subdued. JOLTS job openings were up 12,000 to 7.67 million by the end of October, which was ahead of the 7.15 million that economists had expected.
The market is turning its attention to tomorrow’s rate decision, with a 25-basis-point rate cut priced in at 90%. However, the market is aware that the Fed will make this decision using old data, as the latest CPI inflation report and nonfarm payrolls report have not been released due to the US government shutdown.
Attention will be on the statement converts new projections and Chair Jerome Powell’s press conference to set the tone heading into the end of the year.
