- Indian Rupee (INR) rises as Russia fears ease
- Oil prices & domestic equities slip lower
- US Dollar (USD) falls as risk sentiment improves
- No US data due
The US Dollar Indian Rupee (USD/INR) exchange rate is ticking lower on Wednesday after gains in the previous session. The pair settled +0.17% higher on Tuesday at 74.62. At 11:30 UTC, USD/INR trades -0.02% at 74.60.
The Rupee is treading water as the mood in the broader financial markets improves. There were no notable advances from Russia after Putin sent troops into two breakaway states of Ukraine, which has helped the markets relax after days of tension.
Ukraine has declared a state of emergency and the West has applied sanctions. However, these proved to be less aggressive than what the was expected, helping risk sentiment rise.
Domestic equities spend most of the session in positive territory, before slipping into the red just ahead of the close.
Oil prices are falling lower after reaching a 7 year high in the previous session. Supply fears are cooling bringing West Texas Intermediate back towards $90.
The US Dollar is falling across the board. The US Dollar Index, which measures the greenback versus a basket of major currencies trades -0.10% at the time of writing at 95.95 extending losses from yesterday.
The US dollar fell yesterday, despite upbeat data. The closely watched PMIs revealed that business activity in the US accelerated in February as the economy recovered from the Omicron hit. The service sector PMI came in at 56 in February rebounding from 51.1 in January. The level 50 separates expansion from contraction.
The composite PMI, which is considered a good gauge for business activity rose to 57.5, up from 55.2.
Today the US dollar is struggling as the market mood improves and equities point to a stronger start. There is no high impacting US economic data due today. Headlines from Russia are likely to continue to drive the US dollar in the absence of macro figures.