Oil set for their sixth weekly gain amid tight supplies concerns
|The USDINR pair made a flat opening at 75.11 levels and traded in the range of 74.88-75.13 with a downside bias. The pair finally closed at 75.04 levels. The Reserve Bank of India set the reference rate at 74.9513.
US dollar has surged against major currencies on the back of strong US GDP data (6.9% QoQ, exp: 5.5%), which reinforced market's expectation for monetary policy tightening by the Federal Reserve.
However, later in the day the USDINR pair slipped tracking a surge in Asian share indices. The sentiment for the domestic currency was also supported as some banks stepped in to sell the US dollar on behalf of exporters at relatively higher dollar/rupee levels.
The German economy contracted in the fourth quarter (-0.7% QoQ, exp: -0.3%), data showed today, as restrictions to slow the spread of the Omicron variant hampered activity. German economic growth is expected to slow down to 2.3% in 2023, Economy Minister Robert Habeck stated.
Lending to the Eurozone companies accelerated for the fourth straight month in December, reversing a mid-year dip, ECB data showed.
Oil prices rose today to $89/Barell, set for their sixth weekly gain, amid concerns of tight supplies as major producers continue their policy of limited output increases amid rising fuel demand.
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