Tension in Eastern Europe and West Asia fueled concerns over possible crude oil supply disruptions
|The USDINR pair made a flat opening at 74.57 levels and traded in the range of 74.57-74.80 with an upside bias. The pair finally closed at 74.78 levels. The RBI set the reference rate at 74.7025. The USDINR pair rose because some banks were said to have purchased US dollars on the behalf of oil marketing companies, which noted elevated Brent crude prices. Crude oil prices surged today, recovering some of the previous day's losses, as growing tension in Eastern Europe and West Asia fueled concerns over possible supply disruptions.
Geopolitical tensions have been rising globally as Russia has amassed an estimated 100,000 troops along its border with Ukraine over the past several months. The US dollar remained elevated against major currencies due to the expectation of faster-than-expected rate hikes by the US Federal Reserve. Asian currencies also took cues from domestic equity markets which slumped tracking the US markets.
German business morale improved in January for the first time in seven months as easing supply bottlenecks helped to lift the outlook for manufacturers in Europe's largest economy, a survey showed. The Ifo institute said its business climate index rose to 95.7 from an upwardly revised 94.8 in December. A Reuters poll of analysts had pointed to a December reading of 94.7. China's fiscal revenues rose 10.7% in 2021 from a year earlier, bolstered by last year's economic recovery, Vice Finance Minister Xu Hongcai said, as the government makes 2022 budget plans.
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