- Indian Rupee (INR) for a second day
- IT stocks drag Indian equities lower
- US Dollar (USD) falls versus major peers
- US housing data & Fed speakers in focus
The US Dollar Indian Rupee (USD/INR) exchange rate is rising for a second straight day. The pair rose 0.19% in the previous session, settling at 82.00. At 10:00 UTC, USD/INR trades +0.03% at 82.03 and trades in a range of 81.97 to 81.84.
The Indian Rupee is under pressure against the USD, in line with its Asian peers and tracking domestic equities lower.
Indian shares reversed earlier gains, as IT stocks pulled the broader market lower. Weak earnings from Tata Consultancy Services and Infosys amid certainty over client spending weighed on the sector.
Meanwhile, investors in Asia were shrugging off stronger than forecast China Q1 GDP. The world’s second-largest economy posted 4.5% growth annually, ahead of the 4% forecast. However, there are concerns that the rebound could slow from here and be uneven.
The US Dollar is rising versus the Rupee but falling across the board. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades -0.29% at the time of writing at 101.82, after two straight days of gains.
The US dollar rose yesterday after data filled expectations that the Federal Reserve will raise interest rates in name. The manufacturing index for the state of New York rebounded in April rising for the first time in five months as measures of new orders and shipments surged.
The regional Fed’s Empire State Index jumped to 35.4 points to 10.8, well above forecasts of -18.
According to the CME Fedwatch tool the market is pricing in an almost 90% probability that the Fed will hike rates by 25 basis points in May.
Federal Reserve Governor Bowman is due to speak later and could shed more light on US central banks future plans for interest rates.
US building permit data and housing starts are also due to be released.