- Indian Rupee (INR) falls as Russia invades Ukraine
- Oil rises over $100
- US Dollar (USD) rises on safe haven flows
- US GDP was upwardly revised to 7.2%
The US Dollar Indian Rupee (USD/INR) exchange rate has jumped higher on Thursday after a flat close in the previous session. The pair settled +0.01 higher on Wednesday at 74.62. At 15:30 UTC, USD/INR trades +1.5% at 75.83.
The Rupee trades sharply lower on Thursday as risk sentiment took a hit. News that Russia was invading Ukraine sent risk assets such as stocks and the Rupee steeply lower.
Russian was said to be invading Ukraine from all angles as Putin ordered a mass attack on Ukraine by land, sea and air .
The move sent oil markets rallying higher as investors fretted over supply disruption with through Western sanctions of through Russia limiting supply. West Texas Intermediate trades at 96.,45 at the time of writing but traded as high as $98. Meanwhile Brent rose to $105 per barrel.
Rising oil prices is bad news for India, one of the world’s largest importers of oil. India’s leader Modi and the finance minister met today to discuss the economic impact of the Russia, Ukraine crisis and to consider how to mitigate rising oil prices.
The US Dollar is rising across the board. The US Dollar Index, which measures the greenback versus a basket of major currencies trades +1.5% at the time of writing at 97.63 adding to 0.2% gains from the previous session.
The US dollar is being driven higher on safe haven flows. The US Dollar is the world’s reserve currency meaning that in times of geopolitical tensions or wars it will rise.
In addition to safe haven flows the US Dollar is being boosted by upbeat data. The US GDP was upwardly revised to 7.2% quarter on quarter in the final three months of last year.
US jobless claims also fell to 232,000, down from 249,000 the previous week. There is no more high impacting data due today. Investors will be listening to Fed speakers as they hit the airwaves.