USDINR opened at 75.16 and traded in the 75.03-75.65 range with a bullish bias. The USDINR pair closed the trading session at 75.65. The RBI has set the benchmark rate at 75.2578. USDINR rose as the safe-haven US Dollar remained strongly up against other major currencies after the Russian President announced he had authorized a military operation in Ukraine.
Russian forces invaded Ukraine by land, air and sea today, confirming the West’s worst fears with the biggest state-on-state attack in Europe since World War II. The USDINR pair also rose as several banks bought dollars on behalf of oil marketing companies after Brent prices rose above $103 a barrel. Crude oil prices surged globally, with Brent prices crossing $100 a barrel for the first time since 2014 today after Russia attacked Ukraine, raising fears that a war in Europe does not disrupt the world’s energy supply. The collapse of national stock indices also continued to weigh on the rupiah.
The domestic bond market also bled after crude prices hit a multi-year high. The benchmark 10-year G-sec index closed 2 basis points higher at 6.76%. Investors piled into US sovereign debt, pushing Treasury yields lower. British consumer spending rose slightly in the week to February 17, but other measures were hit by a series of winter storms that battered the country, according to weekly data from the Office for National Statistics.