USD/INR Price News: Shifts auction below 82.70 as investors overlook solid US consumer spending

• USD/INR has shifted its range below 82.70 amid an overnight correction in the USD Index.
• The Indian Rupee will display a power-pack action after the release of the Q3 GDP data.
• S&P500 futures have further added gains after a modest positive Monday, portraying ease in the risk-off mood.

The USD/INR pair has shifted its business below 82.70 in the Asian session led by an overnight sell-off in the US Dollar Index (DXY). The asset has slipped as investors have ignored clouds of uncertainty associated with accelerating consumer spending in the United States amid an upbeat labor market.

US tight labor market has shifted the bargaining power in the favor of job seekers from the hiring agencies amid a shortage of labor. This has flushed significant liquidity in the palms of households for disposal, which is fueling retail demand efficiently. No doubt, the fears of more rates by the Federal Reserve (Fed) are skyrocketing. But for now, the risk-off profile has eased gradually.

S&P500 futures have further added gains after a modest positive Monday session, portraying an improvement in the risk appetite of the market participants. The alpha generated on 10-year US treasury bonds has turned lackluster around 3.92%.

Meanwhile, the Indian Rupee will display a power-pack action after the release of the Q3 Gross Domestic Product (GDP) data for FY2022-23. The Indian economy showed double-digit growth in Q1 as helicopter money released by the Indian administration and expansionary monetary policy by the Reserve Bank of India (RBI) was spurting overall growth. In the second quarter, GDP started moderating and trimmed to 6.3% as the administration started contracting liquidity to bring down galloping inflation.

The RBI projected the real GDP growth for 2022-23 at 6.8% and for the third quarter at 4.4%.

On the oil front, the oil price has recovered to near $75.80 as the economy is betting on China’s reopening after a prolonged lockdown to contain the pandemic. It is worth noting that India is one of the leading importers of oil in the world and higher oil prices can impact the Indian rupee.