- Indian Rupee (INR) rose after losses yesterday
- Indian manufacturing PMI rose to 58.4
- US Dollar (USD) rises versus major peers
- US manufacturing PMI & JOLTS job openings rise
The US dollar-to-Indian rupee (USD/INR) exchange rate is falling after gains yesterday. The pair rose 0.29% in the previous session, settling on Tuesday at 85.70. At 18:30 UTC, USD/INR trades -0.11% lower at 85.60 and traded in a range of 85.45 to 85.70.
Indian rupee is rising after Indian manufacturing activity accelerated to a 14-month high in June, aided by a substantial increase in international sales that boosted output and sparked record hiring.
The India manufacturing PMI rose to 58.4 in June, up from 57.6 in May and in line with preliminary estimates released last week. The level 50 separates expansion from contraction. Incoming orders rose at the steepest rate in almost a year, with international demand bringing significant support. Export orders received the third-highest growth rate since the data point started 20 years ago.
The US Dollar is falling against the Rupee but is rising against its major peers. The US Dollar Index, which measures the greenback against a basket of major currencies, is rising 0.06% to 96.94, after losses yesterday.
The US dollar is edging higher after slightly stronger-than-expected U.S. data, with the ISM manufacturing PMI rising to 49 in June, up from 48.5 in May, coming in ahead of forecasts of 48.8. While this marks the 4th consecutive month of contraction, the rate of contraction has slowed, and inflationary pressures increased slightly.
Meanwhile, job openings were slightly stronger than expected at 7.76 million in May, up from 7.3 million expected.
Despite a slight tick higher, the US dollar is trading around its lowest level since 2022, as Federal Reserve Chair Jerome Powell, speaking at a banking conference in central Portugal, didn’t rule out a July cut.
The market is also closely watching news regarding trade deals and Trump’s tax cut and spending bill, which is being voted on in the Senate.
