The global strength in the safe-haven US currency led banks to place fresh bets in favour of the dollar

The USDINR pair made a flat opening at 75.75 levels and traded in the range of 75.61-75.97 with an upside bias. The USDINR pair has closed the trading session at 75.91. The RBI set the reference rate at 75.7111. The dollar remained firm against other major currencies in European trade due to risk aversion amid the ongoing Russia-Ukraine crisis. The Global strength in the safe-haven US currency led banks to place fresh bets in favor of the dollar on behalf of traders.

The USDINR pair rose as several banks persistently purchased the US dollar on behalf of oil marketing companies, noting sharply high crude oil prices. A slump in domestic benchmark equity indices also dented sentiment for the rupee. Some part of dollar sales were on behalf of the RBI, which was to prevent any sharp depreciation in the domestic currency beyond the 76-a-dollar mark. China’s services sector expanded at the slowest pace in six months, a private survey showed. The industry continues to struggle under tough containment measures to stop the spread of COVID-19 outbreaks.

British businesses' expectations for inflation over the next 12 months have risen to their highest in more than five years, according to a BoE survey that is likely to boost official concerns that soaring inflation may be slow to fall. Eurozone unemployment fell to record lows in January as the economy continued to rebound from the pandemic slump, but industrial producer prices showed a record surge y-o-y because energy prices almost doubled.

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