• Indian Rupee (INR) falls, tracking equities lower
  • Nifty 50 falls from record highs
  • US Dollar (USD) rises after recent losses
  • US Q4 GDP data is due

The US Dollar Indian Rupee (USD/INR) exchange rate is rising for a second straight day. The pair rose 0.04% in the previous session, settling on Tuesday at 82.87. At 10:00 UTC, USD/INR trades +0.10% at 82.95 and trades in a range of 82.79 to 83.01.

The Indian rupee Is falling as It tracks domestic equities lower. The Indian blue-chip index, the Nifty 50, posted its largest drop in five weeks today as investors booked profits ahead of key U.S. economic data,

Indian indices have dropped 1.2% this week after gaining almost 2% in the past two weeks, which took the Nifty 50 to a record high.

Looking ahead Indian GDP data is due tomorrow and is expected to show that growth likely moderated to 6.6% in the October to December quarter.

The US Dollar is rising across the board. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades at +0.31% at the time of writing at 104.15, after recent weakness.

The US dollar is heading higher after a recent bout of weakness as investors look ahead to tomorrow’s key inflation data. The core PCE index is the Federal Reserve’s preferred measure for inflation and could provide further clues over when the Federal Reserve may start to cut interest rates.

Prior to that reading, attention will be on today’s GDP figures, which are expected to confirm that the US economy slowed slightly in the final quarter of last year with 3.3% annualized growth, down from 4.9% in Q3. While the US economy is seeing softening growth, it’s still much stronger than its G7 peers.

The data comes after figures yesterday highlighted the weakening of the US economy as consumer confidence deteriorated for the first time in three months to 106, down from 114.8, and after US durable goods orders slumped 6.1%, much worse than the 4.5% drop forecast amid a plunge in commercial plane orders.