USD/INR: Rupee Weakens as Strong Dollar, Positive U.S. Data Weigh on January 8, 2025

On January 08, 2025, the Indian rupee traded at 85.82 to the U.S. dollar, up nearly 0.01% against 85.72 at the previous close yesterday. The currency hit its all-time low of 85.84 on Monday.

Dollar Strength Weakens Asian Currencies

U.S. job openings data released on Tuesday showed a rise in jobs openings to 8.098 million, surpassing the expected 7.7 million increase, while activity in the services sector also picked up.

The dollar index strengthened by 0.3% following the data release. However, during Asian trading today, the dollar index fell to 108.5.

Meanwhile, the 10-year Treasury yield climbed by approximately 8 basis points to 4.69%, amid the issuance of $39 billion in 10-year U.S. bonds.

Most Asian currencies weakened on Wednesday, with the offshore Chinese yuan trading lower at 7.34.

Key U.S. Economic Events Ahead

Investors are closely watching key upcoming events, including the U.S. jobs report for December on January 12, inflation data on January 15, and President-elect Donald Trump’s inauguration on January 20.

Brent Crude Rises, Foreign Investors Exit

Brent crude futures are 0.3% up, at $77.3 per barrel as of January 8, 2025. According to NSDL data, foreign investors offloaded Indian shares worth a net $356 million on January 7. Additionally, NSDL data reveals that foreign investors sold a net $56.6 million in Indian bonds on the same day.

India’s first advance estimates for FY25, released yesterday, forecast a slower-than-expected economic growth of 6.4%. The data was published by the National Statistical Office (NSO) on Tuesday.

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