Geopolitical tensions mounted after Russia stationed well over 130,000 troops

Abhishek Goenka IFA Global

The USDINR pair made a flat opening at 75.61 levels and traded in the range of 75.33-75.71 with an upside bias. The USDINR pair has closed the trading session at 75.33. The RBI set the reference rate at 75.6611. Initially, the USDINR pair rose because some state-owned banks stepped in to purchase US dollars on behalf of oil marketing companies, noting sharply elevated crude oil prices. However later in the day, the USDINR pair reversed its early gains and slipped as risk sentiment improved after concerns about the Russia-Ukraine conflict eased. Geopolitical tensions mounted after Russia stationed well over 130,000 troops along the three sides of Ukraine.

But today, the Russian military said some of its troops are expected to return to their bases as a number of drills have finished. Moreover, a sharp rise in domestic share indices also supported the Indian currency. The dollar index also came off its earlier high after Russia-Ukraine tensions eased, noting which banks cut their existing bets in favor of the dollar. The unemployment rate in the UK remained unchanged at 4.1% at the end of December, below the 4.2% consensus forecast from economists polled.

German investor sentiment rose in February on expectations that restrictions to contain COVID-19 will ease, allowing growth in Europe's largest economy to pick up, a survey showed. Eurozone economic growth slowed sharply q-o-q as expected in the last three months of 2021, as activity was hit by another wave of COVID-19 infections and surging prices that cut into disposable incomes.

Download The Full Daily Currency Highlights

Author

Abhishek Goenka

IFA Global

Mr. Abhishek Goenka is the Founder and CEO of IFA Global. He pilots the IFA Global strategic direction with a focus on relentlessly improving the existing offerings while constantly searching for the next generation of business excellence.

AUD/USD bulls seem hesitant below 0.7050 ahead of RBA on Tuesday

AUD/USD reverses an Asian session dip on Monday as renewed optimism over Iran diplomacy boosts investor confidence, keeping a lid on the safe-haven US Dollar and supporting the risk-sensitive Aussie. Spot prices, however, remain below the one-month high, touched last Thursday, as bulls wait for the crucial RBA decision before taking fresh positions.

USD/JPY climbs to 158.00 neighborhood as BoJ uncertainty weighs on the JPY

The USD/JPY pair gains some positive traction at the start of a new week, recovering further from Friday's post-Bank of Japan (BoJ) swing low to sub-157.00 levels. The momentum lifts spot prices to the 158.00 neighborhood during the Asian session and seems unaffected by fresh intervention warning from Japan's Finance Minister Satsuki Katayama.

Gold rebounds to near $3,900 as Fed hike bets cap upside

Gold price edges at the start of a new week, reclaiming $3,900 during the Asian session and reversing a part of Friday's heavy losses to its lowest level since October 2025. The upside potential, however, seems limited as elevated oil prices and inflation concerns keep Fed rate hike bets firmly on the table.

Zcash rebounds as ZODL founder now supports ending community grants

Zcash (ZEC) shows signs of recovery on Monday, extending gains above $1,250 as the Zcash Open Development Lab (ZODL) founder, Josh Swihart, now supports the compromise proposal to end the 8% block reward share directed to Zcash Community Grants (ZCG).

Middle East War updates: Iran warns of expanded strikes against US despite progress in talks

Here’s a brief recap of the key developments in the Middle East war that occurred over the weekend, which are expected to have a significant impact on markets in the upcoming week.

The 2% inflation target came from a throwaway remark. It now moves trillions

The Federal Reserve's 2% inflation goal grew out of an off-the-cuff remark by a New Zealand politician in 1988. Bond investors still price long-term US debt as if 2% holds, so a change in how the Fed measures inflation would move markets.