Daily Digest Market Movers: Indian Rupee recovers, potential upside seems limited

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  • “Indian Rupee fell below the 84 per US Dollar mark for the first time on demand from foreign banks amid FII outflows and elevated crude oil prices. Weak domestic markets also weighed on the Rupee,” said Anuj Choudhary, Research Analyst, Sharekhan by BNP Paribas.
  • The annual PPI rose 1.8% YoY in September, compared to a 1.9% increase seen in August, and came in above the market expectation of 1.6%. The core PPI climbed 2.8% YoY in the same period, surpassing analysts' forecast of 2.7%. 
  • On a monthly basis, the US PPI was unchanged in September, while the core PPI was up 0.2% during the same period.
  • The preliminary reading of the US University of Michigan Consumer Sentiment Index fell to 68.9 in October from 70.1 in September, below the consensus of 70.8. The 5-year consumer inflation expectations came in at 3.0% in September.
  • The swaps markets show the Fed’s odds for a 25 bps rate cut at 95.6%, up from 83.3% before the PPI data, according to the CME FedWatch Tool.


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