• Indian Rupee (INR) rises after falling to multi-week low
  • Oil set to drop 10% this week
  • US Dollar (USD) falls as investors re-price Fed expectations
  • Jobless claims are stronger than forecast

The US Dollar Indian Rupee (USD/INR) exchange rate is falling after three straight days of losses. The pair settled +0.77% higher on Wednesday at 82.88. At 18:00 UTC, USD/INR trades -0.27% at 82.65 and trades in a range of 82.44 to 83.05.

The Rupee has struggled across recent sessions amid a risk-off mood in the market. The banking woes in the US and Europe have fueled risk aversion, boosting the safe-haven USD, while weighing on riskier assets.

The Rupee has fallen to its lowest level in several weeks, and some analysts suggest that the Reserve Bank of India could allow the Rupee to weaken further.

The RBI has, on several occasions, intervened to protect the Rupee from the 83 level. But should the bank situation worsen then the RBI could let the Rupee slide further.

Meanwhile, oil prices have been very much in focus, and West Texas Intermediate trades down over 10% this week as investors have been fretting over a new financial crisis.

The US Dollar is falling across the board. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades -0.15% at the time of writing at 104.50 after strong gains yesterday.

The US dollar is edging lower as the going turmoil in the financial sector sees investors price in less aggressive hiking from the Federal Reserve despite stronger than forecast data.

US regional banks continued to come under pressure today as confidence in the sector remained weak following the collapse of Silicon Valley Bank and concerns over the health of Credit Suisse. Banks are coming under pressure as their bond portfolios sit on huge losses as a result of steep interest rate hikes. As a result there are doubts over how much further the Fed can hike

Meanwhile, US data was stronger than expected. US jobless claims fell by more than expected to 192,000, from 212,000, below the 205,000 forecast, highlighting strength in the labour market. US housing starts also climbed to a 5-month high.