USD/INR Price News: Finds bids near 75.50 as the Russia-Ukraine truce optimism fades

• USD/INR is volatile at open as investors await the OPEC meeting.
• The DXY has been hammered on multiple catalysts.
• The optimism over the progress of the Russia-Ukraine peace talks seems to fade away.

Despite a positive conclusion from the peace negotiations on Tuesday, the USD/INR pair has seen a significant increase in buying activity around 75.54 as expectations of a truce between Russia and Ukraine receded.

The first face-to-face peace talks between officials from Russia and Ukraine in Turkey resulted in a Russian military withdrawal from northern Ukraine and Kyiv in response to Ukraine's proposal of a neutral status and the promise of abstaining from alliances, and the withdrawal of Russian military activity from the region. This had resulted in a stronger gain in risk-sensitive assets, which finally led to a surge in the Indian rupee. According to Reuters, a later statement from Russia's chief negotiator cautioned that the country's promise to reduce military operations did not constitute a ceasefire and that a formal agreement with Kyiv remained a long way off, dimming hopes for a truce between the Russian rebels and Ukraine's defenders.

On the oil front, West Texas Intermediate (WTI) futures on the New York Mercantile Exchange (NYMEX) have fallen close to $100 ahead of the OPEC meeting. The main topic of discussion for the OPEC cartel is expected to be how to close the demand-supply imbalance in order to maintain price stability. The Indian rupee may also show a favorable link with oil prices on Thursday, according to market analysts.

Meanwhile, the US dollar index (DXY) is declining as a result of a variety of causes. The dollar is under pressure as a result of broadly stabled market mood, disappointing US economic data, and concern about the possibility of a yield curve inversion.