- Indian Rupee (INR) traces domestic equities lower
- WTI advances +0.25%
- US Dollar (USD) rises as investors seek safe haven properties.
- President Biden’s inauguration on Wednesday
The US Dollar Indian Rupee (USD/INR) exchange rate is extending gains on Monday. The pair closed +0.07 higher on Friday at 73.12, although the pair fell -0.3% across the previous week as a whole. At 10:15 UTC, USD/INR trades +0.2% at 73.26.
The Indian Rupee trended lower on Monday tracing declines in the domestic equity market.
The Indian benchmark Sensex closed just shy of 1% lower at 48,564, whilst the Nifty was down 1.06% on the day at 14,281. Indian shares ended at a more than one week low weighed down by non-bank financial companies on concerns over potential tighter regulation for the sector.
Oil prices started the day weaker, however, West Texas has since rebounded and is pushing higher, adding further pressure to the Rupee. West Texas Intermediate trades +0.25%.
The US Dollar is edging higher across the board. The US Dollar Index which gauges the greenback against its major peers trades +0.1% at 90.89 on Monday.
The US Dollar is building on gains from Friday as investors seek out its safe haven properties amid rising fears over the stalling economic recovery.
US Core retail sales released on Friday revealed a contraction of -1.4% in December compared to November. This was a deeper decline than what analysts were expecting. The data suggests that consumer spending in the world’s largest economy has taken a hit from the strong resurgence in covid cases.
On Wednesday, the inauguration of President Joe Biden at the 46th President of America takes place. The event is expected to be more ceremonious than market moving. However, there are some concerns about possible violence at the event on Wednesday, particularly in light of the chaos in Capitol Hill earlier in the month.
Today, US equity markets are closed for Martin Luther King Day so the US Dollar is expected to trade a tight range.