US Dollar to Indian Rupee (USD/INR) Exchange Rate Stronger after Claims Data
On Monday the US Dollar to Indian Rupee (USD/INR) exchange rate strengthened ahead of the publication of US Initial Jobless and Continuing Claims data.
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The Rupee fell flat against the ‘Greenback’ on Wednesday as US Industrial and Manufacturing reports showed increases in June.
Although the gains fell short of economists’ expectations, the reports weren’t negative enough to warrant concern.
Furthermore, the US Dollar strengthened against several of its most traded currency counterparts as Fed Chairwoman Janet Yellen delivered a second economic testimony, this time to the House Committee.
The Fed chief stuck rigidly to the speech given the previous day, reiterating the central bank’s intention of keeping fiscal policy accommodative but intimating that a rate hike could take place sooner than expected if the nation’s employment sector continues to see improvement.
The US Dollar to Rupee exchange rate moved from lows of 60.0200 to highs of 60.1350 on Thursday.
With payments for oil/defence based orders due, US Dollar demand was also heightened.
That being said, Rupee losses were contained somewhat as the domestic equity market opened in a stronger position.
The Pound to Rupee (GBP/INR) exchange rate was little changed during the European session due to a lack of significant UK data.
A moderately risk-off environment also prevailed in the wake of new sanctions being imposed on Russia in response to the ongoing conflicts in Ukraine.
However, despite the Rupee’s dip today the USD/INR exchange rate has been (in the main) much more stable in 2014.
In the opinion of strategist Hamish Pepper ‘The significant increase in India’s reserves has been an important contributor to the Rupee’s stability this year and places the Reserve Bank of India in a better position to manage foreign-exchange volatility. The Rupee is set for modest appreciation over the coming months, helped by a marked reduction in India’s current-account and fiscal deficits.’
During North American trading, the USD/INR pairing could experience further fluctuations as a result of US Initial Jobless Claims, Continuing Jobless Claims, Building Permits and Housing Starts figures.
The Philadelphia Fed index is also scheduled for publication.
Building permits unexpectedly declined in June, as did housing starts, but less people than forecast filed for initial jobless claims in the week ending July 12.
Tomorrow sees the release of India’s Reserves, Deposit Growth and Bank Loan Growth data. US news, in the form of the University of Michigan Confidence index for July and the Leading Indicators figure could also have an impact on the US Dollar to Rupee exchange rate.
Next week is fairly light in terms of Indian reports so Rupee movement will be dependent on global economic developments.
The British Pound is currently trading against the Rupee in the region of 102.9320.
The US Dollar is currently trading against the Rupee in the region of 60.1800.