The Indian Rupee (INR) is trading with mild gains on Wednesday amid the weaker US Dollar (USD) [7a846752]. Foreign portfolio inflows into the equity markets have returned following the post-election outflows, which might boost the Indian Rupee [7a846752]. Additionally, the decline in crude oil prices helps limit the INR's losses [7a846752]. Market players are focusing on the final reading of India's HSBC Services PMI on Wednesday, which is expected to improve to 60.4 in June, up from 60.2 in the previous reading [7a846752]. On the US docket, ADP Employment Change, ISM Services PMI for June, and the FOMC Minutes will be released later on Wednesday [7a846752]. Traders are now pricing in a nearly 63% chance for a 25 basis points (bps) rate cut from the Fed in September, up from 59.5% on Monday, according to the CME FedWatch tool [7a846752]. Technical analysis suggests that USD/INR might stick within the consolidative range in the near term [7a846752].
The Indian Rupee (INR) gains ground on Thursday on the heavy bearish pressure of the US Dollar (USD) [1c1ae7bc]. The disappointing US ISM Services Purchasing Managers Index (PMI) report for June weighs on the Greenback and acts as a headwind for the pair [1c1ae7bc]. Additionally, the optimism in India’s economic outlook and the continued bull run in Indian equity markets continue to underpin the INR [1c1ae7bc]. However, the renewed USD demand for USD from local corporations and state-run banks, along with higher US Treasury bond yields, might help limit the pair’s downside [1c1ae7bc]. The US markets will be closed on Thursday due to Independence Day. Investors will shift their attention to the US June employment data on Friday, including Nonfarm Payrolls, Unemployment Rate, and Average Hourly Earnings [1c1ae7bc].
