USD/INR PRICE NEWS: TUMBLES BELOW 76.00 ON UPBEAT MARKET MOOD, OIL SEES MORE PAIN AHEAD

• USD/INR is auctioning below 75.60 as DXY weakens on positive market sentiment.
• Falling oil prices add to the downside filters.
• A cut-off in Russian military activity from a few areas of Ukraine doesn’t represent a ceasefire.

The USD/INR pair is hovering around 75.60 amid positive market sentiment after the Russia-Ukraine peace talks displayed their initial constructive outcome. Risk-sensitive assets are underpinned and a shift in liquidity from safe-haven assets has been witnessed.

Russian leader Vladimir Putin has cut off its military activity in northern Ukraine and Kyiv as discussed in the peace talks. While Ukraine proposed to adopt neutral status with the stipulation of international guarantees to protect it from the attack. This was the first face-to-face discussion in nearly three weeks of negotiations and it has turned significant for a ceasefire.

Moscow’s lead negotiator cautioned that Russia’s promise to decrease military operations did not represent a ceasefire and a formal agreement with Kyiv had a long way to go, as per Reuters. However, the Indian rupee bulls are cheered by the headline and have been performing firmer against the greenback.

Adding to that, a serious plunge in oil prices is also supporting the Indian rupee as the latter is the leading importer of oil. The Indian rupee was facing sheer volatility earlier amid boiling oil prices as it was posing the risk of a wider fiscal deficit.  However, a downward trending black gold in the past few trading sessions has brought a sigh of relief for the Indian currency.

Meanwhile, the US dollar index (DXY) is auctioning near Tuesday’s low at 98.35, which is indicating more weakness. Also, a decisive slippage below Tuesday’s low would expose it to the round level support at 98.00.