- Indian Rupee (INR) is flat after falling last week
- Indian inflation is forecast to fall to 4.8%
- US Dollar (USD) falls versus major peers
- US inflation data tomorrow is in focus
The US Dollar Indian Rupee (USD/INR) exchange rate is holding steady after booking gains across the previous week. The pair rose 0.2% in the previous week, settling on Friday at 83.30. At 11:00 UTC, USD/INR trades +0.01% at 83.31 and trades in a range of 83.27 to 83.39.
The Indian Rupee is little changed at the start of the new week as traders remain cautious about taking large positions in a holiday-shortened week and on expectations that the Reserve Bank of India could step in to curb any volatility in the local currency.
The Rupee fell to an all-time low of 83.42 on Friday due to a technical system outage, but the Reserve Bank of India stepped in to stem losses, according to local sources.
Inflation is very much the focus for the week, with US inflation data due tomorrow and Indian headline inflation expected to be released later today.
Inflation for October is expected to hit a four-month low of 4.8% year on year in October.
The US Dollar is holding steady against the Rupee but falling versus its major peers. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades at -0.07% at the time of writing at 105.78, after rising 0.8% last week.
U.S. dollar is edging lower amid a relatively subdued start to the week as investors look on cautiously to tomorrow’s inflation data for further clues on whether more rate cuts are like
The data comes after the Federal Reserve left interest rates unchanged at a 22-year high at the start of November and adopted a slightly more dovish tone than expected. However, last week, Federal Reserve policymakers, including Fed Chair Powell, pushed back on expectations that the central bank was done hiking rates and instead suggested that the battle against inflation may not be over given the resilience of the US economy and sticky inflation.
Still, data on Friday showed that consumer sentiment dropped again in November for a fourth straight month, as household expectations for inflation rose again.
The market barely reacted to news late on Friday that Moody’s had cut the outlook for the US credit to negative from stable.
There is no high-impacting U.S. economic data due to be released today. Federal Reserve official Lisa Cook is due to speak and could provide further insight into the Fed’s next moves.
