- Indian Rupee (INR) falls after 2-days of modest gains
- India GDP data is due tomorrow
- US Dollar (USD) falls versus major peers
- ADP payroll data due later
The US Dollar Indian Rupee (USD/INR) exchange rate is rising after booking small losses in the previous two sessions. The pair fell -0.03% in the previous day, settling on Tuesday at 82.57. At 11:30 UTC, USD/INR trades +0.15% at 83.72 and trades in a range of 82.48 to 82.80.
The Rupee is falling despite domestic equities holding steady in relatively quiet trade ahead of key US economic data.
Indian inflation remains in focus after India’s finance minister said that Indian inflation is expected to remain steady in the coming months despite short-term fluctuations. Food prices rose 11.5% in July, its highest level in over three and a half years. However, growth is expected to remain robust at least to the end of the year.
India is expected to release GDP data for the April to June period on Thursday, and growth is expected to reach 7.7%
The US Dollar is rising versus the Rupee but falling versus its major peers. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades at -0.06% at the time of writing at 103.47, its third straight day of losses.
The USD fell yesterday after a series of weaker-than-expected US economic data. US consumer morale waned as the summer came to a close amid high prices and signs that the jobs market was starting to cool.
According to the Conference Board, consumer confidence tumbled to 106.1 in August, down from 114 in July. Economists had penciled in a reading of 116.
Today attention is turning to US ADP private payroll data, which is expected to show that 195k new payrolls were added. This would be down from 324k in July.
The data comes after JOLTS job openings data yesterday showed that the number of vacancies fell below 9 million for the first time since March 2021, in a sign that the US labour market is starting to slow.