- Indian Rupee (INR) is set to rise 0.7% this week
- Domestic equities head towards a record high
- US Dollar (USD) rises against its major peers
- US Michigan consumer confidence is up next
The US Dollar Indian Rupee (USD/INR) exchange rate is holding steady after modest losses in the previous week. The pair fell 0.06% yesterday, settling on Thursday at 81.90. At 10:30 UTC, USD/INR trades +0.00% at 81.90 and trades in a range of 81.85 to 82.02.
The Rupee has had a solid run higher, advancing across the past eight sessions after several rate cuts in China. Today the rupee is finding support from an upbeat equities market, with shares inching toward a record high on broad-based gains.
Meanwhile, oil prices are holding steady after a 3.5% rally in the previous session. Encouraging refinery data from China and hopes of further stimulus from Chinese authorities have lifted oil proves, which are set to gain across the week for the first time in two weeks.
The US Dollar is holding steady against the Rupee but rising against its major peers. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades + 0.12% at the time of writing at 102.20, after two days of losses. The USD index is set to fall across the week.
The U.S. dollar is rebounding from a one-month low hit overnight. The US dollar had received a boost earlier in the week after the Federal Reserve forecast at least two more interest rate hikes this year, as inflation remains twice the central bank’s target level.
However, weaker-than-expected U.S. economic readings, including industrial production, jobless claims, and lackluster retail sales held, have all raised questions about how much higher the Fed will be able to raise interest rates.
Looking ahead, attention now turns to US Michigan consumer confidence data which is expected to show that morale improved slightly to 60 in June, up from 59.2.
