- Indian Rupee (INR) traces equity markets lower
- Oil prices extend gains
- US Dollar (USD) holds steady after strong gains
- US ISM services PMI data due
The US Dollar Indian Rupee (USD/INR) exchange rate is falling for a second straight day. The pair settled -0.7% lower on Monday at 75.42. At 10:00 UTC, USD/INR trades -0.07% at 75.37.
The Rupee is trading under pressure as domestic equities head lower and as oil prices rise.
Both the Sensex and the Nifty 50 trade lower weighed down by heavyweight financials which has risen firmly in the previous session.
Oil prices are also on the rise, adding to 5% gains in the previous session whilst trading back over $100 per barrel. Oil prices are rising amid growing concerns over supply as the EU and the US promise more sanctions on Moscow in response to the atrocities that Russian troops are committing against civilians in Ukraine.
Furthermore, Iran’s nuclear talks have stalled, meaning that the removal of sanctions on Iranian oil any time soon seems highly unlikely.
At the time of writing West Texas Intermediate trades 1.6% higher at $104.10.
The US Dollar is rising versus the Rupee but is holding steady versus its major peers. The US Dollar Index, which measures the greenback versus a basket of major currencies trades +0.0% at the time of writing at 98.98 after strong gains in the previous session.
The US dollar is holding steady amid talks of additional sanctions on Moscow. The dollar has been drifting as attention turns to the release of the minutes of the latest Federal Reserve monetary policy meeting tomorrow.
Ahead of that, today sees the release of US ISM services PMIIs which are expected to show an increase in activity to 58 in March, up from 56.5 in February as COVID cases fell and restrictions eased.
Several Fed officials are due to speak later today and will be watched closely for further insight into the Fed’s next moves. Fed speakers have been more hawkish recently with many policy make5rs favouring aggressive moves by the Fed to hike interest rates.