- Indian Rupee (INR) slips after yesterday’s gains
- Oil rises as oil supply concerns rise
- US Dollar (USD) rises versus major peers
- US stock market is closed so FX volumes are light
The US Dollar Indian Rupee (USD/INR) exchange rate is rising after posting losses in the previous session. The pair fell 0.19% yesterday, settling on Monday at 81.94. At 10:30 UTC, USD/INR trades +0.07% at 82.00 and trades in a range of 81.86 to 82.03.
The Indian Rupee is little changed, despite a rise in currencies across Asia, as the Reserve Bank of India is rumored to have purchased dollars when the Rupee was around a two-month high of 81.75. The Rupee continues to trade within the same narrow range within which it has traded for the past 3 months.
Oil prices are on the rise rebounding from losses yesterday after Saudi Arabia, and Russia said that they would cut production. Saudi Arabia said that it would extend its 1 million barrels per day output cut for another month in August, while Russia said that it would cut output by 500k barrels per day.
The US Dollar is rising across the board. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades at +0.03% at the time of writing at 103.02, marking the fourth straight day of gains.
The US dollar is pushing higher in holiday-thinned trade stock markets remain closed for Independence Day public holiday.
The greenback remains supported on safe-haven flows amid rising recession fears in the US after the 2-year treasury yield and the 10-year yield inverted by the most in 40 years. The inversion of these yields is often considered a warning sign that a recession is coming.
Yesterday US manufacturing data showed that the slump in the sector deepened in May, dropping to levels last seen around the time of the initial wave of the Covid pandemic. Contracting activity means factories are laying off staff at a greater extent.
Today there is no US economic data and trade is likely to be quiet. This is likely to change again tomorrow with the release of the minutes to the June Federal Reserve meeting.
