A strong US dollar and the expectations of an aggressive increase in interest rates in the US-led crude oil futures to trade lower on Tuesday morning. At 9.57 am on Tuesday, April Brent oil futures were at $83.18, down by 1.06 per cent, and April crude oil futures on WTI were at $76.65, down by 0.98 per cent. March crude oil futures were trading at ₹6,363 on Multi Commodity Exchange (MCX) during initial trading hours against the previous close of ₹6,426, down by 0.98 per cent, and April futures were trading at ₹6,408 against the previous close of ₹6,465, down by 0.88 per cent.
Inflation, the key
The market is eagerly waiting for the minutes of the meeting of the US Federal Reserve, which are expected on Wednesday. Market analysts feel that the minutes of the meeting are likely to stress on the Fed’s hawkish outlook. A few Fed officials recently stated that the interest rates are likely to increase more than expected due to the inflation numbers. An increase in the interest rates would impact economic growth, which, in turn, may impact the demand for commodities such as crude oil. The strength in the US dollar was near a six-week high against several other currencies. This also impacted the crude oil price as a strong dollar makes the commodity costlier for the buyers in other currencies.
Zinc dims, turmeric gleams
February zinc futures were trading at ₹273.50 on MCX in the initial trading hour of Tuesday morning against the previous close of ₹275, down by 0.51 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), April turmeric (farmer polished) contracts were trading at ₹7,112 in early trade against the previous close of ₹7,056, up by 0.79 per cent. April dhaniya futures were trading at ₹6,858 on NCDEX against the previous close of ₹6,890, down by 0.46 per cent.SHARE
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