- Indian Rupee (INR) rises as exporters sell USD
- Oil prices rise further after 4% gains yesterday
- US Dollar (USD) edges higher versus major peers
- US durable goods data due
The US Dollar Indian Rupee (USD/INR) exchange rate is falling on Wednesday after a flat finish in the previous session. The pair settled +0.0% on Tuesday at 79.85 after trading in a range of 79.64 – 79.88. At 10:00 UTC, USD/INR trades -0.10% at 79.77.
The Rupee is pushing higher as Indian exporters sold dollars. This enabled the Rupee to look past a rise in oil prices.
The Indian Rupee has been hovering around the 80-record low-level thanks to interventions from the Reserve Bank of India, which is supporting the Rupee amid worsening risk sentiment.
Oil prices continue to rise, extending yesterday’s almost 4% jump. Saudi Arabia hinted at cutting oil production, surprising the market. Saudi Arabia’s oil minister suggested that a cut could stabilize the oil market, which has seen the price fall in recent weeks as recession fears increase.
The US Dollar is falling against the Rupee but is edging higher against its major peers. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades +0.04% at the time of writing at 108.65 after steep losses yesterday.
The USD plunged yesterday after dire US PMI data. The composite PMI, which is often considered a good gauge for business activity, fell to 45 in August, its weakest reading since May 2020 in the depths of the pandemic, and well below the level 50 which separates expansion from contraction.
The service sector was the reason for the sharp drop as the services PMI fell to 44.1 from 47.3 last month as customers rein in spending amid a surge in prices.
The weak data saw investors reassess aggressive Federal Reserve rate hike bets, which pulled the USD lower.
Today the USD is holding steady after hawkish comments from Fed speakers ahead of tomorrow’s Jackson Hole Symposium. Looking ahead US durable goods orders are expected to show a 0.6% rise YoY in July, down from 2% in June.