- Indian Rupee (INR) falls after 2-days of losses
- Indian GDP & manufacturing PMI also slowed
- US Dollar (USD) is rising against its major peers
- US manufacturing PMI improved
The US Dollar Indian Rupee (USD/INR) exchange rate is rising for a seventh straight day. The pair rose 0.16% in the previous week, settling on Friday at 84.55. On Monday at 21:30 UTC, USD/INR trades +0.20% at 84.72 and trades in a range of 84.89 to 84.56.
The Indian Rupee declined to a record low in one of the sharpest selloffs in months. The fall in the Rupee came after President Trump announced that he would apply 100% trade tariffs on BRICS countries, including India if the bloc sought to use an alternative to the USD for trade.
Meanwhile, India’s GDP fell to its lowest level in seven quarters, and manufacturing PMI data also showed a slowdown in growth to its slowest level in 11 months. The manufacturing PMI fell to 56.5
The US Dollar is rising across the board. The US Dollar Index, which measures the greenback versus a basket of major currencies, rose 0.28%, trading at 107.12 after losses last week.
U.S. dollar is rising at the start of the week, boosted by stronger-than-expected US manufacturing data and less dovish comments from Federal Reserve speakers.
The US manufacturing PMI improved to 48.4 in November, up from 46.5 in October and ahead of expectations of 47.5. While this is in contraction territory below 50, the improvement points to signs of stabilization.
New orders improved from 47.1 to 50.4, and the employment subcomponent also rose from 44.4 to 48.1, so it remains in contraction.
Election clarity probably saw some delayed orders pushed through; however, the potential for tariffs and the risk of supply chain disruption could mean further gains will be limited.
Meanwhile, Fed governor Christopher Waller said that he supported a rate cut this month but then saw a good reason to pause to assess the impact of rate cuts so far on the economy.
