- Indian Rupee (INR) falls for a third day
- Oil prices have risen on Red Sea worries
- US Dollar (USD) is holding steady against major peers
- US housing data is due
The US Dollar Indian Rupee (USD/INR) exchange rate is rising for a third straight day. The pair rose 0.12% in the previous session, settling on Monday at 83.14. At 16:00 UTC, USD/INR trades +0.05% at 83.18 and trades in a range of 83.06 to 83.27.
The Indian Rupee Is struggling again versus the US dollar despite domestic equities pushing higher. The Sensex trades up 0.17% at the time of writing, and the Nifty 50 is rising 0.16%.
Meanwhile, oil prices have also been on the rise in recent sessions, jumping over 1.5% yesterday on concerns over supply disruption in the Red Sea.
Many major shipping firms and oil transporters have halted routes across the Red Sea after several attacks by healthy militants on ships.
Worries are rising of disruptions to trade via the Suez Canal which is the shortest shipping route between Europe and Asia and accounts for 15% of global fishing shipping traffic. The actual effect on oil flows is likely to be limited but the attacks on the ships have boosted geopolitical premium and oil.
The US Dollar is rising against 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 -0.02% at the time of writing at 102.54, after losses on Monday.
The US dollar is holding steady after mild losses yesterday. The sell-off in the US dollar has steadied as recent Federal Reserve speakers have tried to pedal back last week’s dovish monetary policy meeting. On the data front, the economic calendar is relatively quiet, with attention on the US housing market.
US building permits and housing starts are both expected to fall slightly in November, with economists forecasting a decline of 1.2 And 0.8%, respectively.
Weak housing data figures may raise some concerns; however, should the Federal Reserve adopt this more dovish rate path, this could mean that any weakness in the housing market may be short-lived.
The housing sector is considered to be a leading indicator, and it contributes to around 15% of the US economy. Stronger-than-expected data could boost consumer confidence and lift the dollar.
As well as housing data vice chair John Williams will be speaking and equipment regarding inflation the economic outlook or interest rates could drive the dollar.
