- Indian Rupee (INR) hit by rising oil prices
- Oil surged after OPEC+ stuck to plan ear
- US Dollar (USD) eases on Washington agreement.
- US jobless claims due ahead of tomorrow’s NFP
The US Dollar Indian Rupee (USD/INR) exchange rate is edging higher on Thursday extending gains from the previous session. The pair settled +0.29% on Wednesday at 74.75. At 11:30 UTC, USD/INR trades down +0.06% at 74.80.
The Indian Rupee trades around its lowest level since April as concerns over rising crude oil prices. Crude oil prices have shot higher this week after the OPEC+ group agreed to stick with its output plan from July. This was to raise oil production by 400,000 barrels per day from November. There had been expectations that the OPEC+ group would raise output by a further 400,000 given that demand continues to outstrip demand.
India is the world’s third largest oil importer and consumer. With prices rising quickly India will be forced to pass the price hikes on, raising petrol and diesel prices.
The US Dollar is gaining ground versus the Rupee. However, it is ticking lower versus its major peers. The US Dollar Index, which measures the greenback versus a basket of major currencies trades -0.08% at the time of writing at 94.20 after gaining 0.27% in the previous session.
The US Dollar is edging lower following an agreement in Washington over the US debt ceiling. US Senate Republican Leader Mitch McConnell has offered to allow an extension to the US federal debt ceiling into December. A move which has eased recent safe haven flows.
However, the greenback continues to hover around recent highs as elevated energy prices and price hikes from supply chain disruptions raise the prospect of the Fed moving to tighten monetary policy sooner than initially anticipated.
Attention will now turn to US initial jobless claims which are due later today. Expectations are for initial jobless claims to fall to 350,000 after rising to 362,000 in the previous week. These figures come ahead of the closely watched non-farm payroll due tomorrow.
