USD / INR: Rupee surges as exports and foreign exchange reserves hit record highs
- Indian rupee (INR) ends 6-game losing streak
- Exports reach record levels
- US Dollar (USD) Falls After US Jobs Data
- The United States saw 850,000 jobs created against 700 km expected
The US dollar to Indian rupee (USD / INR) exchange rate fell on Friday, breaking a winning streak of 6 sessions. The pair gained 0.27% in the previous session, settling at 74.56 on Thursday. At 4:40 p.m. UTC, USD / INR is trading -0.06% lower to 74.51. The pair is expected to gain 0.4% on the week
According to the Reserve Bank of India, the country’s foreign exchange reserves jumped $ 5.066 billion to a record high of $ 608.999 billion in the week ending June 25. Reserves had declined by $ 4.418 billion the previous week.
By economic data, India recorded its highest ever merchandise export at $ 95 billion in the first quarter of fiscal 2022. Total exports in June reached $ 32 billion, or an 85% year-over-year increase. The record for exports.
In addition, oil prices continue to rise, limiting gains on the rupee. Oil prices have been trading at new highs for two and a half years, with OPEC so far not agreeing to increase production.
The US dollar is falling across the board. The US Dollar Index, which measures the greenback against a basket of major currencies, is trading -0.2% at time of writing at 92.45, down from a 3-month high reached earlier in the session.
The US dollar slipped lower following the US non-farm payroll report. The closely watched Labor Market Report found that 850,000 new jobs were created in the United States in June. It was above the 700,000 that analysts had noted. The optimistic number came after two consecutive months of failures.
The unemployment rate unexpectedly rose to 5.9% in June, from 5.8%. Analysts had expected a decline to 5.7%.
Profit growth showed a mixed picture, reaching 3.4% in June, from 1.9% in May. However, on a monthly basis, profits rose 0.3% lower than expected, down from a downward revision of 0.4% in May. Analysts were forecasting growth of 0.4%.
The data indicated that the labor market recovery is on track but not picking up speed enough to prompt the Fed to act sooner.