- Indian Rupee on the rise despite equities falling & oil rising
- Oil is rebounding after 6% drop on Tuesday
- US Dollar advances as European currencies drop
- Jobless claims data is due tomorrow after a quiet week for data
The US Dollar Indian Rupee exchange rate is heading lower on Wednesday, snapping a two day losing streak. The pair settled on Tuesday +0.4% at 73.74. At 07:15 UTC, USD/INR trades -0.2% at 73.59.
The Rupee is managing to push higher versus the US Dollar despite significant losses on the domestic equity market and rising oil prices.
The Sensex and the Nifty 50 both experienced losses of around 0.4% by the close of the session on Wednesday. Foreign institutional investors were net sellers in capital markets as they sold out of shares.
Oil price were also rebounding after a 6% drop in West Texas Intermediate in the previous session. Oil slumped as investors grew increasingly concerned over demand prospects as coronavirus cases rose strongly in the UK and India, as well as in 22 states in the US.
Whilst the US Dollar is falling against the strong Indian Rupee, the greenback is rising versus its major peers. A deep sell off in European currencies, particularly the Pound owing to Brexit concerns is boosting the USD.
The market have brushed off news that AstraZeneca has had to pause its coronavirus vaccine trials after a participant became ill. This is actually standard procedure within the realms of vaccine testing and the data will now be independently reviewed.
There is little on the economic calendar to attract attention. Investors will be keen to see how the US stock market holds up after shares on Wall Street plunged in the previous session. The sharp decline sent investors in search of safe havens boosting the US Dollar. US Futures are expected to open higher today.
Tomorrow attention will be back onto macro data with the release of US jobless claims data ahead of inflation figures on Friday.