The US Dollar to Indian Rupee (USD/INR) exchange rate is trending within a tight range whilst trader focus is dominated by forthcoming monetary policy meetings from the Bank of England and the European Central Bank. A slightly softer US Dollar can be attributed to traders buying profits after an impressive Federal Reserve Beige Book spurred a significant appreciation.
An absence of Indian data, meanwhile, will see the Rupee subject to changes in foreign currency movement.
The US Dollar to Indian Rupee exchange rate is currently trending in the region of 61.8680.
Yesterday…
After domestic data printed relatively positively, the US Dollar to Indian Rupee (USD/INR) exchange rate strengthened. The Indian Rupee, meanwhile, has softened as a result of the bullish ‘Buck’ (USD) despite better-than-expected services data.
The US Dollar to Indian Rupee exchange rate is currently trending in the region of 61.8937.
The US Dollar has advanced against all of its major peers on Wednesday after mixed domestic data erred towards the positive. Of particular significance, in terms of its positive impact on the US Dollar, was the ISM Non-Manufacturing Composite which eclipsed the median market forecast of a rise from 57.1 to 57.5, with the actual result reaching 59.3.
US Dollar Exchange Rate Advances on Oil Prices
As oil prices continue to tumble, the US Dollar has advanced as North American economic growth is bolstered by cheap energy prices. This, in turn, has spurred rate hawks to speculate that the Federal Reserve will increase their cash rate sooner-than-anticipated.
Federal Reserve Vice Chairman Stanley Fischer stated that falling oil prices may encourage US consumption. He added that officials are closer than they were ‘a few months ago’ to dropping a pledge to keep interest rates low for a ‘considerable time.’
The US Dollar to Indian Rupee exchange rate has fallen to a low today of 61.7932.
Positive Data has little Impact on Indian Rupee Exchange Rate
With emerging market currencies faltering against a surging US Dollar, positive Indian data has had minimal impact on Rupee movement. The HSBC Services PMI eclipsed the market consensus of a rise from 50.0 to 51.1, with the actual result advancing to 52.6.
Commenting on the India Services PMI survey, Chief India Economist at HSBC Pranjul Bhandari said; ‘Service sector activity grew in November, as new business rose for the seventh month running. Despite the uptick in order flows, business sentiment deteriorated, reminding us that continued policy action that addresses investor concerns is needed to sustain growth momentum.’
US Dollar to Indian Rupee (USD/INR) Exchange Rate Forecast to Strengthen
With speculation rife that the Federal Reserve will normalise monetary policy sooner-than-expected, the US Dollar to Indian Rupee exchange rate is likely to continue trending higher.
The US Dollar to Indian Rupee exchange rate has advanced to a high today of 61.9403.
US Dollar (USD) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
US Dollar,
,Swiss Franc,0.9753,
US Dollar,,Euro,0.8110,
US Dollar,,Pound,0.6384,
US Dollar,,New Zealand Dollar,1.2869,
Swiss Franc,,US Dollar,1.0259,
Euro,,US Dollar,1.2329,
Pound Sterling,,US Dollar,1.5663,
New Zealand Dollar,,US Dollar,0.7770,
[/table]
