Indian Rupee Opened Weaker Amid US Inflation Worries

Indian Rupee Opened Weaker Amid US Inflation Worries

11 May 2021 10:04 AM


Indian rupee opened weaker at 73.48 compared to 73.35 in the previous session tracking Asian peers and equities amid US inflation worries. Asian equities fell after selloff in technology shares in the US. Rising commodity prices and positive economic data amid an ultra-accommodative monetary policies raised bets on a spike in inflation. The risk of rising inflation forcing the Fed to withdraw stimulus earlier than expected would increase the volatility significantly. Dollar index was up 0.1% at 90.26. Ten-year US yield was at 1.5950%. Later in the day, JOLTs job openings for March are due out of the US and may influence the pair following disappointing nonfarm payroll figures from last week. A number of Fed officials are scheduled to speak later today and will be eyed by market participants to look for their economic outlook. WHO classified the triple-mutant Covid variant from India a world health risk, prompting FII outflows and weighing on the Indian equities. Brent crude was 0.7% lower at $67.82 per barrel.


It’s an eventful day for Euro on the economic calendar. ZEW economic sentiment figures for Germany and the Eurozone are due out and are expected to increase amid the progress in vaccine drive. Anything to the contrary may weigh on the pair. At the time of writing, Euro was up 0.11% to $1.2142.


It’s a relatively quiet day for Pound on the economic calendar. With no material stats due out, the focus will be on BoE Governor Bailey’s speech later today. Any chatter on policy or the economic outlook may provide direction to the pair. Brexit updates and updates on reopening of the UK economy will continue to influence. At the time of writing, Pound was up 0.01 % to $1.4123.


It was a busy morning for Yen on the economic calendar. Household spending rose by 7.2% MoM in March compared to a 2.4% rise in February and 2.1% increase expected. Spending rose by 6.2% YoY compared to a fall of 6.6% in February and 1.5% increase expected. Going ahead, the focus will shift to US JOLTs Job Openings data and Fed’s official speeches for fresh cues. At the time of writing, Yen was up 0.09 % to $108.88.                                                                                                                                             

Important data releases today








German ZEW Economic Sentiment (May)





EIA Short-Term Energy Outlook





JOLTs Job Openings (Mar)





BoE Gov Bailey Speaks