• Indian Rupee (INR) pares gains from Monday
  • New daily covid cases increase at slowest rate in 3 months
  • US Dollar (USD) eases back as stimulus talks continue
  • US President election in focus ahead of debate later in the week

The US Dollar Indian Rupee (USD/INR) exchange rate is trading higher on Tuesday, paring losses from the previous session. The pair settled -0.13% lower on Monday at 73.35. At 10:15 UTC, USD/INR trades +0.15% lower at 73.45.

India recorded its lowest daily coronavirus count in almost three months on Tuesday, as the country continues to show a decreasing trend from its peak in September. 46,790 new infections were recorded over the past 24 hours, which takes the total number of covid infections to 7.6 million. This is the second highest in the world, only behind the US.

However, with the holiday season looming, experts have warned that infections could pick up over the coming weeks and months.

Rising oil prices were adding pressure to the Rupee. After a shaky start oil is pushing higher, snapping three days of losses. WTI trades +0.3% above $41.00.

The US Dollar has reversed earlier gains and is trading lower versus is major peers, albeit higher versus the Indian Rupee. The absence of any additional US stimulus is dragging on sentiment.

Congressional fiscal stimulus talks continued yesterday and are set to carry on today, as the clock ticks towards the Tuesday deadline set by House Speak Nancy Pelosi. Democrat and US Treasury Secretary Steve Mnuchin said that differences between the two sides were narrowing. However, he also added that differences remain.

If the two sides fail to agree a deal by today’s deadline, then there will be no additional covid economic relief package until after the US Presidential elections.

There is no high impacting US data due for release today. With the US elections just two weeks away, attention will turn towards the final live debate between President Trump and Joe Biden later this week. Joe Biden is leading in the national polls.