Key Moments
- The Indian Rupee trades around 94.90 per US Dollar, hovering just above a recent two-month low of 94.80.
- Fed funds futures now price a 67% probability of a 25 bps rate hike on September 16 and imply 60 bps of tightening over the next twelve months, according to Brown Brothers Harriman.
- Standard Chartered upgrades its India FY27 GDP growth forecast to 7.2% from 6.6%, citing stronger-than-expected data and supportive festive-season demand.
Rupee Steadies Near Recent Lows as Dollar Strengthens
The Indian Rupee (INR) was little changed against the US Dollar (USD) on Wednesday, opening near 94.90 and staying close to the two-month low of 94.80 reached the previous day. Despite Tuesday’s firm performance, the currency remains vulnerable as investors increasingly anticipate a more aggressive policy stance from the Federal Reserve at its upcoming meeting this month.
As of the latest pricing, the US Dollar Index (DXY) – which tracks the Greenback against six major peers – trades 0.13% higher, near 99.80, marking its highest level in more than two weeks. The stronger Dollar backdrop is seen as a potential drag on the Rupee in the near term.
Dollar Performance Against Major Currencies
The following table shows the percentage change of the US Dollar against a basket of major currencies. On the day, the US Dollar is strongest versus the Canadian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | INR | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.14% | 0.05% | -0.38% | 0.20% | -0.03% | -0.11% | 0.16% | |
| EUR | -0.14% | -0.09% | -0.52% | 0.06% | -0.16% | -0.20% | 0.02% | |
| GBP | -0.05% | 0.09% | -0.41% | 0.15% | -0.08% | -0.15% | 0.11% | |
| JPY | 0.38% | 0.52% | 0.41% | 0.57% | 0.34% | 0.29% | 0.52% | |
| CAD | -0.20% | -0.06% | -0.15% | -0.57% | -0.23% | -0.27% | -0.04% | |
| AUD | 0.03% | 0.16% | 0.08% | -0.34% | 0.23% | -0.05% | 0.20% | |
| INR | 0.11% | 0.20% | 0.15% | -0.29% | 0.27% | 0.05% | 0.23% | |
| CHF | -0.16% | -0.02% | -0.11% | -0.52% | 0.04% | -0.20% | -0.23% |
In this matrix, the base currency is shown in the left-hand column and the quote currency across the top row. For instance, selecting the US Dollar in the left column and moving along to the Japanese Yen cell provides the percentage move in USD (base)/JPY (quote).
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