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  • Indian Rupee (INR) advances despite India – Chinese border tensions remaining high
  • Oil prices decline 6% over 3 straight sessions of losses
  • US Dollar (USD) rises versus major peers amid growing fears over fragile economic recovery
  • Indian Rupee trades comfortably below 76.00

The Indian Rupee is trending higher versus the US Dollar on Thursday, clawing back losses from the previous session. The Rupee settled lower on Wednesday – 0.3% at 75.66

At 10:15 UTC, USD/PKR trades -0.1% at 75.58, as the pair continues to trade comfortably below 76.00.

Gains in the Indian Rupee are expected to be capped as risk factors remain stacked against the currency. Weak domestic equities and continued India – Chinese tensions could keep any move higher for the Rupee subdued.

Whilst the two sides, India and China, are disengaging troops, recent satellite data shows that China has added new structures to the site near where the deadly border clash occurred. This will heighten concerns over another flare up between the two nuclear neighbours.

Falling oil prices were offering some support to the Rupee. Oil trades down over 6% across the past three session on high inventory levels and fears of a second lock down in the US. Lower oil prices is beneficial for India, a county which buys oil.

The US Dollar is trading higher versus its major peers as investors seek refuge in the safe haven. Reports of new daily record infections in Florida, Texas and California and rising coronavirus cases in the US mean investors are fearing that lockdown measures could be reimposed in order to bring the outbreak under control. This would knock the fragile economic recovery.

Investors will now turn their attention towards a triple hit of US data which is due for release today, including US GDP, jobless claims and durable goods numbers.

The US GDP reading is expected to confirm that the US economy shrank by -5% on an annualised basis in the first quarter.  US durable goods are also expected to rebound in May after tanking in April.

Meanwhile, the US labour market is expected to show a frustratingly slow recovery with initial jobless claims increasing 1.3 million, only down 200,000 from last week’s 1.5 million. is a news site only and not a currency trading platform. is a site operated by TransferWise Inc. ("We", "Us"), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on do not represent our views.