- Indian Rupee (INR) falls after losses last week
- Oil prices soar on Middle East tensions
- US Dollar (USD) rises on safe haven flows
- US Fed speakers in focus
The US Dollar Indian Rupee (USD/INR) exchange rate is rising adding to gains from last week.. The pair rose +0.1% in the previous week, settling on Friday at 83.11. At 10:30 UTC, USD/INR trades -0.14% at 83.25 and trades in a range of 83.12 to 84.25.
The Indian rupee is falling, tracking Indian domestic equities lower in risk-off trade after an unprecedented attack by the Palestinian group Hamas on Israel over the weekend.
The escalation of geopolitical tensions in the region has also lifted oil prices, which jumped over $3 a barrel higher around the European open.
The surge in oil prices comes after oil dropped around 10% in the previous week on concerns that higher interest rates could slow economic growth.
While neither Israel on Palestine are oil producers, the prospect of geopolitical tensions spreading to nearby oil producing nations such as Iran and Saudi Arabia have lifted the risk premium on oil.
The US Dollar is rising across the board. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades +0.445% at the time of writing at 106.52, after losses across last week.
The US dollar there’s rising on safe haven flows has the attacks on Israel boost demand for safe haven assets such as the US dollar and gold. Anytime there is international turmoil the US dollar often strengthens.
These latest developments come after data on Friday showed that the US jobs market was much stronger than expected with 336k jobs added in September which was more than double what analysts had expected. Job creation in August and July was also revised sharply higher, highlighting the strength in the labour market.
However, it’s worth noting that average wages rose at a slower pace and that the market is still pricing in an 85% probability that the Federal Reserve will leave interest rates unchanged in the November meeting.
Looking ahead there is no high impacting U.S. data due to be released today attention will be on Federal Reserve speakers he could shed more light on The future path for interest rates.
