- Indian Rupee (INR) rises as risk sentiment improves
- All eyes are on Ukraine, oil prices rise
- US Dollar (USD) falls despite Fed hike
- Fed Chair Powell to speak
The US Dollar Indian Rupee (USD/INR) exchange rate is heading high on Monday paring losses from the previous session. The pair fell -0.5% last week settling on Friday at 76.05. At 10:30 UTC, USD/INR trades +0.14% at 76.16.
The Rupee is heading higher as the market mood and risk sentiment rebounds after a weaker start. The Ukraine crisis continues to drive the market mood. Peace talks continue and Turkey reported that both Russia and Ukraine are moving closer to agreeing on some key points. Even so the bombing of Ukraine continues with the capital Kiev experiencing heavy shelling overnight.
Meanwhile, oil prices have jumped higher as supply fears return. EU leaders and President Biden as due to hold several summits this week to consider toughening the sanctions on Russia. Fears are growing the EU could look to ban Russian oil, as the US has.
West Texas Intermediate trades 4% higher as $107.30 at the time of writing. India imports over 80% of its oil needs, so higher oil prices are bad news for the Indian economy.
The US Dollar is falling versus the Rupee but holding steady versus its major peers The US Dollar Index, which measures the greenback versus a basket of major currencies trades 0% at the time of writing at 98.24 after booking losses of 0.9% last week.
The US dollar lost ground last week despite the Federal Reserve raising interest rates by 25 basis points and indicating that there could be around 6 more hikes across the year. The more hawkish than expected Fed failed to lift the greenback.
Today there is no high impacting US economic data. However, Federal Reserve Chair Jerome Powell is due to speak later today and could offer fresh impetus to the greenback.