inr-bank-notes - INR
  • Indian Rupee (INR) is flat across the week
  • Manufacturing PM rose to 56
  • US Dollar (USD) holds steady versus major peers
  • Fed Chair Powell is due to speak

The US Dollar Indian Rupee (USD/INR) exchange rate is inching lower after trading flat for the week. The pair rose +0.01% in the previous session, settling on Thursday at 83.35. At 16:00 UTC, USD/INR trades -0.03% at 83.33 and trades in a range of 83.26 to 83.36.

The Indian Rupee is holding its ground after data showed that factory growth accelerated in November following a recent blip but remains supported by robust demand.

India’s manufacturing PMI rose to 56 in November up from 55.5 in October which marked almost 2 1/2 years that the index has been above the 50 level which separates expansion from contraction.

The data comes as Asia’s third-largest economy grew at 7.6% in the last quarter, remaining on track to be the fastest-growing major economy this fiscal year.

The US Dollar id holding steady across the board. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades +0.03% at the time of writing at 103.53, after rising 0.71% yesterday.

The US dollar is holding study ahead of an appearance by Federal Reserve chair Jerome Powell later today.

The market will be watching his comments closely for any clues on where interest rates may be heading over the coming months. His comments come after core PCE, the Federal Reserve’s preferred gauge for inflation, cooled in line with expectations to 3.5% annually in October, down from 3.7% in September.

Meanwhile, the personal spending growth also slowed, suggesting that the US economy is on track for cooling inflation and a soft landing. The USD rallied yesterday however, across November the U.S. dollar has fallen sharply on bets that the Federal Reserve has finished hiking interest rates and the next move by the central bank will be an interest rate cut. The market is pricing in 100 basis points worth of cuts for 2024, which may be a little bit optimistic.

On the data front US ISM manufacturing PMI data is due shortly and expected to show that the sector contracted at a slower pace in November at 47.6, up from 46.7.