• Indian Rupee (INR) eases after strong gains yesterday
  • Oil prices ease
  • US Dollar (USD) rises as peace talks fail
  • US CPI rises 7.9%

The US Dollar Indian Rupee (USD/INR) exchange rate is rising on Thursday, snapping a two-day losing run. The pair settled -0.7% lower on Wednesday at 76.35. At 163;0 UTC, USD/INR trades +0.03% at 75.60. The pair is on track to gain 0.6% this week.

The Indian Rupee is showing resilience against the US dollar, which comes as the Reserve Bank of India may be feeling the pressure to tackle rising inflation sooner than it had initially planned after global commodity prices jumped higher.

Analysts at the S&P rating agency said that if inflation pushes above the 4% – 6% level for a prolonged period of time then the RBI will feel pressure to hike sooner. The agency forecast economic growth of 9.8% in the current fiscal year which ends in March and could achieve growth of 7.8% in the coming fiscal year.

Oil prices are falling again today with West Texas Intermediate trading over 1.5% after booking 12% losses in the previous session.

The US Dollar is rising across the board. The US Dollar Index, which measures the greenback versus a basket of major currencies trades +0.47% at the time of writing at 98.43 after steep losses in the previous session.

The US dollar fell sharply yesterday as risk sentiment picked up considerably. Riskier assets were in favour and the safe-haven US dollar was out of favour as investors grew optimistic of a breakthrough in Russia, Ukraine peace talks which took place today.

Unfortunately, the market’s optimism was misplaced and the talks between Russian foreign minister Lavrov and his Ukraine counterpart Kuleba failed to make progress on achieving a ceasefire in Ukraine. The news once again drove safe-haven demand lifting the US Dollar.

Today US inflation data was released and showed that consumer prices jumped 7.9% year on year in February, up from 7.5% in January. The data comes as commodity prices across the board have pushed higher after Russia invaded Ukraine.