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MUMBAI: The Indian rupee snapped a three-day losing streak on Thursday, as most Asian currencies advanced against the dollar, with upcoming US data releases and Federal Reserve commentary awaited.
The rupee finished at 82.1475 per US dollar compared with 82.2250 in the previous session, having declined about 0.45% over the past three days.
The Chinese yuan, South Korean won and the Philippine peso rose as the dollar index lost some steam on Thursday, having taken support from rising U.S. yields this week.
With US inflation, retail sales and labour report out of the way, markets remain quite choppy. Traders expect the trend to continue till the Fed meeting in May, with a focus on commentary from central bank officials and U.S. data during the period.
Overnight, Fed Bank of New York President John Williams said inflation was still at problematic levels and the U.S. central bank would act to lower it.
Meanwhile, a Fed report showed economic activity was little changed in recent weeks as employment growth moderated somewhat and price increases appeared to slow.
“The report should not interfere too much with the market’s 89% probability pricing of a 25 basis points (bps) Fed hike on May 3,” ING analysts wrote in a note.
But after the hint of a softening labour market, any big upside jump in initial jobless claims data due later in the day could be worth a 0.5% fall in the dollar index back to the 101.50 area, they added.
For now, the odds of another 25 bps increase in June had risen to 30%. The U.S. manufacturing report due on Friday would be keenly watched.
Meanwhile, minutes of the Reserve Bank of India’s latest monetary policy meeting, where rates were left unchanged at 6.50% in a surprise move, will be released after market close.
The rupee finished at 82.1475 per US dollar compared with 82.2250 in the previous session, having declined about 0.45% over the past three days.
The Chinese yuan, South Korean won and the Philippine peso rose as the dollar index lost some steam on Thursday, having taken support from rising U.S. yields this week.
With US inflation, retail sales and labour report out of the way, markets remain quite choppy. Traders expect the trend to continue till the Fed meeting in May, with a focus on commentary from central bank officials and U.S. data during the period.
Overnight, Fed Bank of New York President John Williams said inflation was still at problematic levels and the U.S. central bank would act to lower it.
Meanwhile, a Fed report showed economic activity was little changed in recent weeks as employment growth moderated somewhat and price increases appeared to slow.
“The report should not interfere too much with the market’s 89% probability pricing of a 25 basis points (bps) Fed hike on May 3,” ING analysts wrote in a note.
But after the hint of a softening labour market, any big upside jump in initial jobless claims data due later in the day could be worth a 0.5% fall in the dollar index back to the 101.50 area, they added.
For now, the odds of another 25 bps increase in June had risen to 30%. The U.S. manufacturing report due on Friday would be keenly watched.
Meanwhile, minutes of the Reserve Bank of India’s latest monetary policy meeting, where rates were left unchanged at 6.50% in a surprise move, will be released after market close.
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