- Indian Rupee (INR) rises for a second day
- Oil prices fall after Trump speaks at Davos
- US Dollar (USD) falls against its major peers
- Trump reiterated threats of Canadian trade tariffs
The US Dollar to Indian Rupee (USD/INR) exchange rate is falling on Thursday after a flat finish on Wednesday. The pair ended 0% in the previous session, settling on Wednesday at 86.45. At the time of writing, USD/INR trades -0.04% at 86.41 and is in a range of 86.34 to 86.51.
The Rupee is heading higher for a second straight day as the Indian equity market rises and oil prices decline.
The benchmark Indian indices closed higher on Thursday, boosted by IT stocks and optimism over the rise in US AI spending.
Meanwhile, oil prices have fallen sharply lower following comments from Donald Trump at Davos.
President Trump demanded that Saudi Arabia and OPEC lower oil prices to lower the costs for Americans at the petrol pumps. His comments came after Trump warned that the US would increase its oil and gas output in his inauguration speech.
India imports 80% of its oil requirements, so lower oil prices are beneficial.
The US Dollar is falling across the board. The US Dollar Index, which measures the greenback against a basket of major currencies, trades at -0.09%, priced at 108.04 on Thursday after rising yesterday.
The US dollar is heading lower on Thursday after Donald Trump spoke at the World Economic Forum in Davos and after weaker-than-expected US jobless claims data.
During his online speech at the forum, President Trump declared the US trade deficit with Canada unsustainable and reiterated the need for deeper tariff measures.
On the data front, initial jobless claims rose to 223k for the week ending January 18th, slightly ahead of the 220K expected and up from 217k in the previous week. The data comes after jobless claims last week were significantly weaker than expected
Despite some weakness in recent jobless claims data, the US economy is still growing at a solid clip, around 2.5% to 3%, which is helping to underpin the US dollar.
