- Indian Rupee (INR) steady despite falling equities and rising oil prices
- US Dollar (USD) eases back from 2 month high versus major peers
- Fed Williams in focus
The US Dollar Indian Rupee (USD/INR) exchange rate is holding steady at the start of the new week after strong gains in the previous week. The pair rallied 1.1% last week settling on Friday at 74.10. At 11:00 UTC, USD/INR trades +0.01% lower at 74.11 in quiet trade at the start of the week.
The Indian Rupee is treading water despite domestic equities falling lower and oil prices gaining ground.
India’s shares fell on Monday, dragged lower by heavyweight financial stocks. The Nifty 50 trades down 0.7%, whilst the Sensex is off by 0.75%. The move lower comes after both indices posted their first weekly fall in 5 weeks last week following the Federal Reserve’s hawkish turn.
Oil prices are extending gains on Monday, building on four straight winning weeks. Optimism surrounding a strong driving season the US, combined with a reduced risk of Iranian oil returning to the market helps to boost oil prices. West Texas Intermediate trades +0.2% at $71.45.
The US Dollar is holding steady versus the Rupee but has dropped lower versus its major peers. The US Dollar Index, which measures the greenback versus a basket of major currencies trades -0.2% at the time of writing at 92.06, slipping away from the two month high hit last week.
The US Dollar surged last week following a hawkish surprise by the US Federal Reserve. In its FOMC meeting, the US central bank indicated that it expected two interest rate hikes in 2023. St Louis Federal Reserve President James Bullard then said that he expected to see a rate hike as soon as next year.
The hawkish turn by the Fed lifted the US Dollar. However, those gains have proved to be short lived and the Dollar is edging lower at the start of the week, with few drivers.
There is no high impacting data due to be released today, instead investors will look to Fed speaker Williams for further clues.