US Dollar to Indian Rupee (USD/INR) Exchange Rate Rallies on US Data

After US Data printed positively, the US Dollar to Indian Rupee (USD/INR) exchange rate strengthened considerably. Mixed Indian data has seen the Rupee fluctuate on Friday, but a surging US Dollar has caused the emerging market Rupee to soften.

The US Dollar to Indian Rupee exchange rate is currently trending in the region of 61.7411.

US Dollar (USD) Surges on US Data

Friday’s North American economic data printed positively, allowing the US Dollar to recover from a long bearish period. Advance Retail Sales increased from -0.3% to 0.2%, but the actual result advanced to 0.3%. Further ‘Greenback’ advances can be attributed to impressive University of Michigan Confidence which eclipsed the median market forecast of a rise from 86.9 to 87.5, with the actual data reaching 89.4.

In addition, positive results from Retail Sales Control Group, Retail Sales Less Autos, and Business Inventories have also aided the US Dollar appreciation.

The US Dollar to Indian Rupee exchange rate has dropped to a low today of 61.4710.

Indian Rupee (INR) Declines on Mixed Data

On Friday morning, the Indian Rupee softened against its major peers after the Wholesale Price Index fell to a five-year low. Mixed results from Indian data published later on Friday compounded the Rupee downtrend. Deposit Growth declined from 12.6% to 12.0%, Foreign Reserves fell from $315.91 billion to $315.13 billion. Bank Loan Growth, however, increased from 11.1% to 11.2%.

US Dollar to Indian Rupee (USD/INR) Exchange Rate Forecast to Strengthen

After quite a substantial period of US Dollar depreciation, the recent data is likely to have a pronounced effect. As the US Dollar strengthens, emerging market currencies such as the Rupee are likely to soften against their major peers. Therefore, it is likely that the USD/INR exchange rate will continue trending lower over the course of the weekend.

The US Dollar to Indian Rupee exchange rate has reached a high today of 61.8523.