- Indian Rupee (INR) falls as oil prices rise
- Oil extends gains on tight supply fears
- US Dollar (USD) is steady versus its major peers
- US consumer confidence data is due
The US Dollar Indian Rupee (USD/INR) exchange rate is rising on Tuesday for a fourth straight session. The pair settled +0.2% higher on Monday at 78.42 At 10:00 UTC, USD/INR trades +0.47% at 78.78.
The Indian Rupee is falling, hitting a record low as it tracks Indian equities lower as oil prices rebound.
Oil prices are rising for a second straight day after the G7 leaders agreed to apply further sanctions to Moscow. The group plans to apply a limit to oil Russian oil prices, although it is unclear exactly how this will be achieved given that China and India are Russia’s largest customers. Even so, the move is expected to tighten supply in an already very tight market.
The Nifty 50 and the Sensex traded steeply lower before paring earlier losses as risk sentiment improved.
News that China is reducing COVID restrictions further is helping the market mood.
The US Dollar is rising versus the Rupee but holding steady versus its major peers. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades -0.03% at the time of writing at 103.97 after booking losses for the past three days.
The US dollar has traded under pressure as recently as concerns over the Federal Reserve hiking interest rates too aggressively raised concerns of a recession. As a result, investors then reining in Fed hiking bets amid expectations of slowing growth.
Upbeat data yesterday failed to lift the buck. Pending home sales and US durable goods data yesterday were both stronger than forecast yesterday, but that failed to boost the buck.
Today attention is turning to the US consumer confidence data which is expected to show that consumer morale continues to fall in June to 100.4 down from 106.00 in May as rising prices take their toll on sentiment in the world’s largest economy. Weaker than forecast consumer confidence could pull the USD lower.
