- Indian Rupee (INR) rises paring yesterday’s losses
- Oil prices drop as the US mulls reserve release
- US Dollar (USD) rises versus major peers
- US jobless claims & PCE inflation data due
The US Dollar Indian Rupee (USD/INR) exchange rate is falling on Thursday paring gains from the previous session. The pair settled +0.2% higher on Wednesday at 75.80. At 10:00 UTC, USD/INR trades -0.15% at 75.68.
The Indian Rupee is gaining ground, tracing domestic equities higher. The upbeat mood comes as oil prices tumble over 5%.
Oil prices have fallen sharply after the US mulls over the possibility of a record release of strategic oil reserves (SPR). The Biden administration is weighing up the release of 180 million barrels over the period of several months, which would market the largest such release in the 50-year history of the SPR.
Biden is expected to comment on this later as attention also turns to the OPEC+ group which will decide whether to increase its production output in May. The oil cartel, with includes Russia is not expected to increase output.
Falling oil prices are boosting the market mood more broadly as inflation concerns cool slightly. India, imports over 80% of its oil requirements.
The US Dollar is falling versus the Rupee but is rising against its major peers. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades +0.2% at the time of writing at 98.00 after falling 1% over the past two sessions.
The US Dollar is rebounding despite the risk-on mood in the broader market reflected in stronger equities.
Attention is now turning to US data releases later today. These include the jobless claims report, which saw initial claims fall to 18k the lowest level since 1969 last week. The report today is expected to show 197k initial jobless claims.
US core PCE data, which is the Federal Reserve’s preferred gauge of inflation is expected to rise to 5.5% year on year in February, up from 5.2% in January. High inflation could cement 50 basis point rate hike in May.
