- The Indian Rupee moves higher against the US Dollar to near 85.65.
- India is in no rush to sign a trade pact with the US.
- FOMC minutes suggest that officials are worried about tariff-led inflation.
The Indian Rupee (INR) gains sharply against the US Dollar (USD) on Thursday. The USD/INR pair declines to near 85.65, while investors await the confirmation of the trade deal between India and the United States (US) to gauge direction.
Last week, US President Donald Trump expressed more than once that Washington is close to striking a deal with India. However, comments from Indian Commerce and Supply Minister Piyush Goyal indicated that New Delhi is not in a rush to sign the deal, stating that an agreement will not close until it gains confidence that the pact is in the national interest.
“India does not negotiate under deadlines,” Goyal said and added, “We negotiate keeping national interest in mind, and national interest is paramount in all our engagements across the world.”
A report from NDTV showed on Thursday that both nations aim to lower overall duty barriers to promote a healthy competitive environment. Additionally, New Delhi was seeking to safeguard its agriculture sector and labor-intensive companies, such as leather, footwear, and clothes, from exposure to competition from US companies.
A delay in the confirmation of a trade deal between India and the US has weighed on Indian equity markets. Nifty50 slides almost 100 points below 25,400, while Sensex30 declines 0.3% below 83,300.
Another reason behind the strength in the Indian Rupee is growing hopes of a decline in the Oil price in the near term, as the OPEC+ announces a bigger-than-expected increase in Oil production, which is expected to support the Indian Rupee. Currencies from nations that depend largely on Oil imports, such as the Indian Rupee, perform strongly in a lower Oil price environment.
Indian Rupee PRICE Today
The table below shows the percentage change of Indian Rupee (INR) against listed major currencies today. Indian Rupee was the strongest against the Swiss Franc.
| USD | EUR | GBP | JPY | CAD | AUD | INR | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.10% | -0.22% | -0.04% | -0.13% | -0.36% | -0.12% | 0.07% | |
| EUR | 0.10% | -0.14% | 0.03% | -0.02% | -0.24% | 0.02% | 0.16% | |
| GBP | 0.22% | 0.14% | 0.14% | 0.12% | -0.10% | 0.09% | 0.29% | |
| JPY | 0.04% | -0.03% | -0.14% | -0.09% | -0.30% | -0.06% | 0.02% | |
| CAD | 0.13% | 0.02% | -0.12% | 0.09% | -0.20% | 0.04% | 0.18% | |
| AUD | 0.36% | 0.24% | 0.10% | 0.30% | 0.20% | 0.21% | 0.39% | |
| INR | 0.12% | -0.02% | -0.09% | 0.06% | -0.04% | -0.21% | 0.12% | |
| CHF | -0.07% | -0.16% | -0.29% | -0.02% | -0.18% | -0.39% | -0.12% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Indian Rupee from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent INR (base)/USD (quote).
Daily digest market movers: Fed officials argued against near-term interest rate cuts
- The Indian Rupee moves higher against the US Dollar. While the US Dollar trades subduedly amid uncertainty surrounding the tariff policy.
- On Wednesday, US President Trump revealed another batch of reciprocal tariffs for seven countries that failed to secure a trade deal during the 90-day pause period. However, the impact of the announcement of fresh tariff rates is expected to be limited as it doesn’t contain countries with whom the US does meaningful business.
- Considering the current status of trade negotiations by Washington with nations like the Eurozone, China, Canada, and Mexico, US President Trump is unlikely to slap hefty tariffs on them. So far, major trading partners of the US that have been slapped with reciprocal tariffs are Japan and South Korea.
- Meanwhile, Donald Trump has also stated that proposed 50% tariffs on copper imports will become effective from August 1, the same date when his reciprocal tariffs will be executed, while claiming the scope of the base metal in a number of companies.
- On the monetary policy front, the Federal Open Market Committee (FOMC) minutes of the June 17-18 policy meeting has signaled that a majority of Federal Reserve (Fed) officials believe that interest rates cuts are appropriate later this year if tariff-driven inflation proved to be “limited and temporary”, Reuters reported. The minutes also stated that officials felt borrowing rates are not far above the neutral level. Only a “couple of participants noted they would be open to considering a rate cut as soon as the July meeting.”
- According to the CME FedWatch tool, the Fed is almost certain to leave interest rates in the current range of 4.25%-4.50% in the policy meeting later this month.
Technical Analysis: USD/INR sees more downside to near 85.00
USD/INR falls to near 85.70 at open on Thursday. The pair faces a sell-off above the 20-day Exponential Moving Average (EMA), which trades around 85.87, suggesting selling pressure at higher levels.
The 14-day Relative Strength Index (RSI) falls below 50.00. A fresh bearish momentum would emerge if the RSI breaks below 40.00.
Looking down, the May 27 low of 85.10 will act as key support for the major. On the upside, the June 24 low at 86.42 will be a critical hurdle for the pair.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
