- Indian Rupee (INR) falls after yesterday’s gains
- Oil surged 5% after Trump’s tariffs
- The US Dollar (USD) rises versus major peers
- US CPI data comes into focus
The US dollar-to-Indian rupee (USD/INR) exchange rate is rising after losses yesterday. The pair fell -0.32% in the previous session, settling on Wednesday at 87.74. At 18:30 UTC on Friday, USD/INR traded +0.07% higher at 87.77 and traded in a range of 87.63 to 87.95.
The Indian rupee came under pressure after oil prices surged following President Trump’s announcement of sanctions on Russian oil companies Rosneft and Lukoil. These two major oil corporations help fund the Kremlin’s war machine, according to U.S. Treasury Scott Bessent. These two firms produce a combined 3.2 million barrels of oil per day.
This marks the first direct intervention from the trump administration on Russia over its invasion under therefore being viewed as a Jew politically significant moment.
The moves raise concerns about supply, lifting oil prices by more than 5% today. Higher oil prices are bad news for India, which imports over 80% of its oil needs.
The US Dollar is rising against its major peers. The US Dollar Index, which measures the greenback against a basket of major currencies, is trading +0.06% at 98.95, after modest losses yesterday.
The US dollar pushed modestly higher on Thursday as investors digested a resurfacing of more US-China trade tensions. The White House says it is considering software-linked export curbs on China. This latest development comes ahead of President Trump and Jinping’s meeting at the end of October, where the market is optimistic that the two leaders could extend the trade truce.
With the US government shutdown ongoing, you asked, data has been in short supply. Attention is now turning to tomorrow’s CPI inflation print, one of the few data releases this month.
Expectations are for CPI to rise to 3.1% up from 2.9% year on year. Hotter than expected inflation could see the market rain in rate cut expectations
