Indian Rupee (INR) Recovers Losses
The Indian Rupee (INR) is rebounding after experiencing losses in the previous session. Currently, the USD/INR exchange rate is showing a slight increase of 0.05%, trading at 82.88. Despite this, it’s on track to decrease by 0.16% over the week.
Indian Composite PMI Hits 7-Month High
India’s composite Purchasing Managers’ Index (PMI) has reached a seven-month high, indicating an expansion in business activity. In February, the PMI rose to 61.5, up from 61.2, with both manufacturing and service sectors showing strong demand.
US Dollar (USD) Declines Throughout the Week
The US Dollar (USD) has been on a downward trend over the week, marked by a fall in the US Dollar Index, currently trading at 103.93, down 0.02%. This decline is despite relatively hawkish comments from Federal Reserve officials and positive jobless claims data.
Risk-On Sentiment Weakens USD
The weakening of the USD can be attributed to a risk-on sentiment prevailing in the market, evidenced by record highs in US indices and positive corporate results from companies like Nvidia. This optimism has led to a decrease in demand for safe-haven assets, including the USD.
Key Takeaways
- Indian Economy Shows Resilience: India’s robust business activity, reflected in the composite PMI, indicates continued growth momentum for the economy.
- USD Faces Pressure Despite Positive Factors: Despite positive factors such as hawkish comments from the Federal Reserve and strong jobless claims data, the USD is facing downward pressure due to prevailing market sentiment.
- Market Focus Shifts to US Economic Data: Attention is turning to upcoming US economic data, particularly the Personal Consumption Expenditures (PCE) data, which could provide insights into inflationary pressures and future monetary policy decisions.