- Indian Rupee (INR) edges lower after modest gains yesterday
- India’s current account deficit narrowed to $1.3 billion
- US Dollar (USD) falls versus major peers
- US consumer confidence, durable goods & housing data due
The US Dollar Indian Rupee (USD/INR) exchange rate is edging higher after small losses in the previous session. The pair fell -0.02% yesterday, settling on Monday at 81.97. At 10:30 UTC, USD/INR trades +0.03% at 82.00 and trades in a range of 81.94 to 82.04.
The Reserve Bank of India said that India’s current account deficit narrowed significantly in the January to March quarter, helped by an increase in services exports.
The current account was $1.3 billion or 0.2% of GDP in the fourth fiscal quarter, compared to a deficit of $16.8 billion or 2% of GDP in the previous quarter of October to December. In the same quarter a year earlier the deficit had been $13.4 billion.
The US Dollar is rising against the Rupee but falling against its major peers. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades at -0.2% at the time of writing at 102.51.
The US dollar is falling for a second straight day amid an improving market mood and as investors look ahead to the release of US data points.
US durable goods orders are expected to fall 1% month on month in May after rising 1.1% in April. Meanwhile, consumer confidence is expected to take higher in June to 104 up from 102.3. Last month Consumer confidence dipped to a six-month low as views on the US labour market softened. Stronger-than-expected consumer confidence could lift the USD.
Data regarding EU S housing sector will also be in focus with the release of new home sales as well as the house price index.
This data comes just a week after EU S Federal Reserve chair Jerome Powell pointed to two more interest rate hikes across the year. The market is pricing in just one more rate hike most likely in July.
