- Indian Rupee (INR) rises as peace talks set to continue
- Oil prices rise as the US bans Russian imports
- US Dollar (USD) falls as risk sentiment rises
- US JOLTS job openings due
The US Dollar Indian Rupee (USD/INR) exchange rate is falling for a second straight day on Wednesday. The pair settled -0.09% lower at 76.89 on Tuesday. At 10:30 UTC, USD/INR trades -0.39% at 76.59.
The Indian Rupee is pushing higher amid as risk sentiment improves. News that Ukraine is no longer insisting on joining NATO in addition to more peace talks being planned for tomorrow in Turkey are helping to lift the mood in the market.
Investors are managing to look past rising oil prices. Oil prices rallied 4% in the previous session and are extending those gains today after the US announced a ban on all Russian oil and oil product imports. Britain said that it will phase Russian oil out across the rest of this year. These moves sent West Texas Intermediate to a high of $130, which is bad news for India which imports around 85% of its oil needs.
The higher oil prices mean that fuel prices hikes are expected to start in India this week.
The rise in global commodities could threaten India’s budget plans. February’s budget was based on oil prices at $75 to $80 a barrel across the fiscal year, well below current levels.
The US Dollar is falling across the board. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades -0.43% at the time of writing at 98.63, extending losses from the previous session.
The US Dollar is ticking lower on safe-haven outflows as US futures point to a stronger start. The S&P500 futures trade over 1.5% higher at the time of writing.
There is little on the economic calendar to keep investors’ attention, just the JOLTS jobs opening report which is expected to show that there are still around 11 million job vacancies in the US amid a tight labour market.
