- Indian Rupee (INR) falls after gains yesterday
- Oil prices hold steady
- US Dollar (USD) rises, recovering after losses yesterday
- US industrial output due
The US Dollar Indian Rupee (USD/INR) exchange rate is rising on Tuesday paring losses from the previous session. The pair traded fell -0.21% yesterday, settling at 82.17, trading in a range between 82.09 to 82.42. At 11:00 UTC, USD/INR trades +0.26% at 82.37.
The Rupee is under pressure on Tuesday owing to strong demand for US dollars from oil companies and other importers, which resulted in the Rupee pairing gains from the previous session.
The Rupee has steadied in recent sessions after dropping to a record low of 82.68 last Monday. Interventions from the Reserve Bank of India have helped to halt the slide in the Rupee.
Whilst the Fed continues to hike rates and the global economic outlook remains bleak, the Rupee is likely to stay under pressure.
Separately oil prices are holding steady for a second straight session. Whilst OPEC+ is cutting output which is supporting the price, recession fears are hurting the demand outlook.
The US Dollar is rising across the board. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades at +0.17% at the time of writing at 112.27 after booking losses of 0.87% in the previous session.
The USD fell sharply yesterday in risk-off trade as earning optimism lifted the market mood. Equities jumped higher, and the USD fell.
Today the greenback is attempting to claw back some of those losses, even as risk sentiment remains upbeat. Analysts at several major investment banks said that they consider the selloff in the USD as a temporary correction. While the Federal Reserve remains intent on hiking interest rates higher and for longer, the USD is likely to continue rising.
There is no high-impacting US economic data due to be released today instead, attention will remain on earnings with the release of Goldman Sachs ahead of the opening and Netflix after the close.
