- Indian Rupee (INR) falls after 2-days of gains
- Oil prices steady after two days of losses
- US Dollar (USD) rises on safe-haven flows
- Alphabet earnings disappoint
The US Dollar Indian Rupee (USD/INR) exchange rate is rising, snapping a two-day losing streak. The pair fell -0.07% in the previous session, settling on Tuesday at 83.01. At 18:30 UTC, USD/INR trades +0.18% at 83.15 and trades in a range of 83.21 to 83.19.
The Indian rupee pared early against which came about as oil prices dropped sharply across the past two days.
Oil prices had fallen around 5% over the past few sessions as world leaders pushed for a diplomatic solution to the Israel-Gaza conflict and as weak eurozone economic data raised concerns over the oil demand outlook.
Meanwhile, the risk-off mood means that investors are ditching riskier assets and currencies, such as the Rupee in favour of safe havens like the US dollar and gold.
The US Dollar is rising across the board. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades +0.24% at the time of writing at 106.52, extending gains from the previous session.
The US dollar is rising for a second straight day as risk sentiment deteriorates after lacklustre quarterly earnings and as treasury yields rise. Risk sentiment took a hit after Alphabet, the parent of Google, slumped following earnings, which showed that the cloud division missed estimates. The risk-off mood in the market was helping drive safe-haven flows into the US dollar.
Meanwhile, the US 10-year treasury yields edged higher, resuming a move towards the 5% high briefly reached on Monday, a level last seen 16 years ago.
Federal Reserve chair Jerome Powell is due to speak shortly and could provide more clues about the future path for interest rates. His speech will come a day after US PMI data highlighted the strength in US economy by unexpectedly rising in October.
Tomorrow sees the release of US GDP data, which is expected to highlight the strength of the US economy, growing by 4.3% annualized in July to September. Strong data could fuel bets that the Federal Reserve will keep interest rates higher for longer.
