USD/INR Price News: Declines to near 82.50 as investors discount overnight sell-off in USD Index
|- USD/INR has tested territory below 82.50 as investors discount the impact of the overnight sell-off in the USD Index.
- The risk of recession still persists as the Fed is expected to continue its policy-tightening spell.
- The Indian Rupee remained in the spotlight after the release of upbeat Q4GDP data.
The USD/INR pair has displayed immense selling pressure at open as investors are discounting the impact of the overnight sell-off in the US Dollar Index (DXY). The asset has dropped to near the crucial support at 82.50.
S&P500 futures have added nominal gains in the Asian session after a bearish Wednesday. The overall market mood is quite cautious as investors have shifted their focus toward the United States Employment data, which will build a base of June’s monetary policy meeting by the Federal Reserve (Fed).
The US Dollar Index (DXY) has faced stiff barricades while attempting to extend recovery above 104.30. Meanwhile, clearance of the US debt-ceiling bill in Congress has entirely faded fears of a default by the Federal government. However, the risk of recession still persists as the Federal Reserve (Fed) is expected to continue its policy-tightening spell.
Wednesday’s job market data showed that the recruitment process by firms is quite healthy. Now table turns to the United States Employment data. A release of better-than-anticipated US labor market data would bolster the requirement for more interest rate hikes by the Fed. As per the estimates, US Automatic Data Processing (ADP) Employment Change (May) data is seen landing at 170K vs. the former release of 296K.
On Wednesday, the Indian Rupee remained in the spotlight after the release of upbeat Q4 Gross Domestic Product (GDP) data. The Indian economy expanded 6.1% in the fourth quarter of CY2022-23, higher than the prior expansion pace of 4.5%. Retail demand has remained resilient in the Indian economy and it could strengthen inflationary pressures again.
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