- Indian Rupee (INR) rises on Putin- Biden talk optimism
- Oil prices fall on US – Iran talk progress
- US Dollar (USD) falls on safe haven outflows
- US economic calendar quiet
The US Dollar Indian Rupee (USD/INR) exchange rate is lower at the start of the week adding to losses across last week. The pair shed -0.8% last week, settling on Friday at 74.67. At 11:30 UTC, USD/INR trades -0.34% at 74.41.
The Rupee is moving higher in cautiously optimistic trade. Risk sentiment has received a boost across the board on news of a likely meeting between Russia’s Vladimir Putin and US President Joe Bide, in an attempt t o find a diplomatic solution to the tense situation of the Ukraine border. French President Macron had managed to broker the summit. However, the meeting will only happen if Russia doesn’t invade Ukraine.
Military exercises in neighboring Belarus are ongoing, whilst Russian backed rebels in the east of Ukraine have been clashing with the government. The situation remains very fragile, but there is still a glimmer of hope of a diplomatic solution.
As risk appetite cautiously returns, riskier assets and currencies, such as the Rupee, are gaining ground, whilst the safe have US dollar is trading out of favour.
Separately oil prices are fall around 1% lower, extending losses from last week as investors digest the latest Russia, Ukraine headlines and as US – Iran nuclear talks appear to be progressing towards a deal.
The US Dollar is falling across the board. The US Dollar Index, which measures the greenback versus a basket of major currencies trades -0.23% at the time of writing at 95.83 extending mild losses from the previous week.
The US Dollar is failing on safe haven flows. Furthermore, it’s a public holiday in the US so volume is thin and there is no high impacting economic data.
Last week, thr minutes to the latest Fed meeting were less hawkish than expected, so Fed speakers will be particularly in focus this week, ahead of US inflation data on Friday.
