- The Indian Rupia supports the initial losses in relation to the American dollar, despite the Greenback trade definitely.
- The influence of Trump’s tariffs began to filter in the price.
- Investors are waiting for confirmation of the American-Indian trade agreement.
The Indian Rupia (INR) exceeds its peers on Wednesday in terms of hope that the US and the Indian will soon achieve a trade agreement. On Tuesday, US President Trump expressed confidence in closing the contract with India after the publication of a trade agreement with Indonesia and added that the pact would also allow American companies to access Indian markets.
Confirmation of the trade agreement between the USA and India will be secured by Indian companies oriented against the threat of higher tariffs by the US.
Although this will not be a scenario for all Indian companies, because the statement of US President Trump signaled that New Delhi allows concessions in some US sectors, allowing its companies to compete in a highly supported country.
The scenario of American companies entering India will be unfavorable for Indian corporations, taking into account that Washington has a competitive advantage of high capital and technology. This can find business moods, affect capital markets and reduce the flow of investment of foreign direct and institutional investors.
However, Minister Piyush Goyal injected on Tuesday that both nations are working on achieving a “win” agreement, reports Financial Express (Fe). Goyal added that the main Indian commercial negotiator of Rajesh Agrawal, the team managed by him, will take place on Wednesday in the next round of commercial talks.
Meanwhile, Indian indicators regain early losses and become positive, and NIFTY50 regains 25,2500 and Sensex30 increases above 82,700. However, the prospects of the Indian pharmaceutical industry have become gloomy, after Trump threats to apply tariffs until the end of the month.
On Tuesday, Trump stated that he would start with lower tariffs, before he moved to the higher, to enable domestic pharmaceutical producers to enhance their ability. Given that India is a key exporter of pharmaceuticals for the USA, tariffs for Indian pharmaceutical companies can significantly affect their development.
Price of Indian rupe today
The table below shows a percentage change in the Indian rupe (INR) compared to the stock exchange main currencies. The Indian rupe was the strongest in relation to the American dollar.
| USD | EUR | GBP | JPy | BOOR | Aud | Inr | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.21% | -0.16% | -0.13% | -0.09% | -0.16% | -0.21% | -0.12% | |
| EUR | 0.21% | 0.06% | 0.05% | 0.11% | 0.00% | 0.03% | 0.11% | |
| GBP | 0.16% | -0.06% | 0.02% | 0.07% | -0.03% | -0.05% | 0.05% | |
| JPy | 0.13% | -0.05% | -0.02% | 0.04% | 0.04% | -0.08% | 0.07% | |
| BOOR | 0.09% | -0.11% | -0.07% | -0.04% | -0.07% | -0.12% | -0.02% | |
| Aud | 0.16% | -0.01% | 0.03% | -0.04% | 0.07% | -0.02% | 0.08% | |
| Inr | 0.21% | -0.03% | 0.05% | 0.08% | 0.12% | 0.02% | 0.05% | |
| CHF | 0.12% | -0.11% | -0.05% | -0.07% | 0.02% | -0.08% | -0.05% |
The heat map shows percentage changes in the main currencies towards each other. The basic currency is collected from the left, and the quote currency is collected from the upper order. For example, if you choose an Indian rupe on the left column and move along the horizontal line to the American dollar, the percentage shift displayed in the field will represent INR (base)/USD (quote).
Daily Digest Market Movers: Profits from the Indian rupe despite inflation based on the tariff strengthens the American dollar
- The Indian rupe regains early losses and rises on Wednesday in relation to the US dollar (USD). . USD/INR The pair moves to nearly 85.85, even when the American dollar expands its position after Pare Federal Reserve (FED) traders, according to signs with characters with United States (USA) Report of the consumer price indicator (CPI) after June that the tariffs announced by President Donald Trump began to feed inflation.
- American dollar index (DXY), which follows the Greenback value compared to the six main currencies, trades closely nearly three -week levels of around 98.60.
- The CPI report showed on Tuesday that the headline inflation accelerated at the expected pace both every month and every year, while the basic readings omitted the estimates. However, they came higher than the edition of May. The report also notes that the prices of products imported by the US, such as household equipment, recreation and clothing, increased rapidly when the importers began to transfer the influence of higher tariffs on consumers, which prompted traders to re -assess their expectations for the Fed monetary policy perspectives.
- According to the CME Fedwatch tool, the probability of lowering interest rates in the September meeting decreased to 55.5% from 64.7%.
- Market experts also warned that the impact of Trump’s tariffs still did not exceed prices, because American importers loaded wrestling before the announcement of mutual fees on the so -called “Liberation Day” in April. In addition, the impact of tariffs announced on 22 countries and trade agreements with several nations has not yet filtered. The lack of transparency of inflation managed by the tariff will encourage Fed Officials to keep interest rates at their current levels longer.
- If the last tariffs threatened on August 1, it will pass a few months so that this additional enhance in inflation is felt in the prices of goods and keeps the Fed on the side line, unless the sudden labor market transforms into worse, “said Ryan Sweet, the main US economist at Oxford Economics, Reuters said.
Technical analysis: USD/INR tries to organize a 20-day EMA
Turning USD/INR after re -browsing a three -week maximum 86.15 on Wednesday. The close trend of the couple has become uncertain because it tries to hold above the 20-day interpretation average (EMA), which trads around 86.00.
The 14-day relative strength (RSI) indicator oscillates in the range of 40.00-60.00, which suggests that the resources lack the shoot on both sides.
Looking down, on May 27, the lowest of 85.10 will act as a key support for the major. On the other hand, the low on June 24 at 86.42 will be a key obstacle to the couple.
