- Indian Rupee (INR) rises after losses yesterday
- Oil remains below $100 per barrel
- The US Dollar (USD) is falling versus its major peers
- US PPI inflation rose 0.5% MoM vs 1.2% expected
The US dollar-to-Indian rupee (USD/INR) exchange rate is falling after gains yesterday. The pair rose 0.24% in the previous day, settling on Wednesday at 93.38. At 16:30 UTC on Thursday, the pair is down -0.22% to 93.18 and trades between 93.09 and 93.36.
The Indian rupee is rising amid growing optimism over a potential deal to end the war in Iran, which is keeping oil prices below $100 per barrel and lifting the broader market mood.
US stock markets have risen to record highs as traders move into riskier assets and currencies such as the rupee.
A combination of client flows and foreign investor investment into Indian equities, along with limited appetite to short the rupee following the RBI’s recent restrictions, is supporting the currency.
Despite the Strait of Hormuz remaining effectively closed, the market is pricing in a lasting peace in the Middle East. Oil prices are down around 8% this week.
Lower oil prices are important for India, which imports over 90% of its energy requirements.
The US dollar is falling against the Rupee but rising versus its major peers. The US Dollar Index, which measures the currency against a basket of major peers, is up 0.16% at 98.00, after eight days of losses.
The U.S. dollar is rising against its major peers after eight straight sessions of decline. Attention remains focused on potential peace talks later this week, as President Trump says the war with Iran could be close to ending.
However, Iran has said significant differences remain, particularly regarding its nuclear programme.
On the data front, U.S. jobless claims were stronger than expected, falling to 207,000, pointing to low layoffs. This was down by 11,000 from the previous week, although claims data can be volatile around holidays, including Easter.
The data adds to recent releases suggesting the labour market is stabilising. The latest non-farm payrolls report for March also showed job growth rebounded and unemployment declined.