- Indian Rupee (INR) edges lower after weak China data
- Domestic equities reach a record high
- US Dollar (USD) rises versus major peers after strong data
- Fed Chair Jerome Powell to speak later
The US Dollar Indian Rupee (USD/INR) exchange rate is rising, adding to gains from the previous session. The pair rose 0.02% yesterday, settling on Tuesday at 81.98. At 11:30 UTC, USD/INR trades +0.07% at 82.04 and trades in a range of 81.97 to 82.07.
The Indian rupee is falling for a second straight day as investors digest more disappointing data from China. Chinese industrial profits fell again and are down over 15% across the first 5 months of this year. This raises concerns over the momentum of the economic recovery from the pandemic in China.
Meanwhile, strong domestic equities providing support as Indian shares hit record highs. The Nifty 50 and the Sensex rallied by around 1% to hit record highs today. The Sensex had already hit a record high last week.
The US Dollar is rising across the board. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades at +0.06% at the time of writing at 102.56, snapping a two-day losing streak.
The US dollar is rising as investors continued to digest a slew of stronger-than-expected data from the previous session. U.S. consumer confidence jumped to 109.7 in June, at the highest level since January 2022 and up from 102.3 in May, in a sign that Americans are feeling far more confident about the economy.
The tight US labour market is helping to boost confidence, as consumers viewed jobs as plentiful. Often strong consumer confidence gives households The motivation to continue spending.
Today attention is turning to Federal Reserve had to rain pal who is due to speak at the ECB central banking forum in Sinatra, Portugal. His appearance comes after he said last week That interest rates need to continue rising and guided for a further two hikes this year.
