USD/INR Price News: Indian rupee benefits from weak oil prices and upbeat market mood
- USD/INR has tumbled near 75.80 as falling oil prices are hoping for lesser outflows for India.
- The DXY is losing strength on upbeat market sentiment.
- An announcement of a ceasefire is likely after the Putin-Zelenskyy meeting.
The USD/INR pair has witnessed intense selling pressure at open and has slipped near 75.80 at the press time. The Indian rupee is benefitting from falling oil prices and a risk-on impulse amid de-escalation in the Russia-Ukraine war.
Oil prices are falling like a house of cards amid easing supply worries. West Texas Intermediate (WTI) oil has slipped below the $100 market after a halt in military operations on the Saudi-Yemeni borders. The move has trimmed the concerns over the supply issue. However, the mega event that dragged the oil prices was the additional oil supply from the US Strategic Petroleum Reserve (SPR) announced by US President Joe Biden. This has resulted in a bloodbath for the oil prices as the asset nosedived more than 12% last week.
Meanwhile, the progress in the Russia-Ukraine peace talks has improved the risk appetite of investors. Risk-sensitive assets are outperforming amid easing geopolitical tensions. The negotiators from Russia and Kyiv cited a ceasefire verbally however; an official confirmation holds significant importance. The meeting between Russian leader Vladimir Putin and Ukraine’s President Volodymyr Zelenskyy after the development of a specific written document is likely to bring a ceasefire soon.
Meanwhile, the US dollar index (DXY) is trading lackluster despite the record low jobless numbers. The US Unemployment Rate landed at 3.6%, printing record lows since February 2020. The US Jobless rate has outperformed the estimate of 3.7% and the previous figure of 3.8%. This has raised the odds of an interest rate hike by the Federal Reserve (Fed) in May’s monetary policy.