The Indian Rupee (INR) is trading higher against the US Dollar in Wednesday’s opening session. The USD/INR pair falls to near 90.30 as the value of the Indian rupee rises following Tuesday’s trade talks between the United States (US) and India.
Indian Foreign Minister Subrahmanyam Jaishankar said in a post on X, formerly known as Twitter, that trade talks with US Secretary of State Marco Rubio have been good and they will continue to discuss the issues discussed. “Just finished a good conversation with @SecRubio. We discussed trade, critical minerals, nuclear cooperation, defense and energy. I agreed to stay in touch on these and other issues,” Jaishankar wrote.
In response, US Ambassador to India Sergio Gor stated in a post on X that it was a “positive call” and the next meeting would most likely take place in February.
Easing trade frictions between the US and India benefits the Indian rupee, which emerged as Asia’s worst performing currency in 2025 due to the highest tariffs imposed by Washington on imports from New Delhi. The US raised tariffs on India to 50% and added 25% punitive duties on the purchase of oil from Russia.
Meanwhile, foreign investors continue to abandon their holdings in the Indian stock market amid the US-India trade stalemate. So far in January, foreign institutional investors (FIIs) continued to be net sellers on eight out of nine trading days and shed their holdings worth Indian rupees. 16,925.03 crore.
During Wednesday’s session, investors’ attention will focus on WPI inflation data for December, which will be released at 12:00 EST (06:30 GMT). Wholesale inflation is expected to escalate by 0.3% after falling at a similar pace in November.
The table below shows the current percentage change of the Indian Rupee (INR) against the major listed currencies. The Indian rupee was strongest against the US dollar.
| USD | EUR | GBP | JPY | BOOR | AUD | INR | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.03% | -0.12% | 0.03% | 0.00% | -0.28% | -0.14% | -0.03% | |
| EUR | 0.03% | -0.10% | 0.06% | 0.06% | -0.26% | -0.11% | 0.02% | |
| GBP | 0.12% | 0.10% | 0.17% | 0.14% | -0.16% | -0.04% | 0.11% | |
| JPY | -0.03% | -0.06% | -0.17% | -0.02% | -0.31% | -0.14% | -0.04% | |
| BOOR | -0.00% | -0.06% | -0.14% | 0.02% | -0.29% | -0.13% | -0.02% | |
| AUD | 0.28% | 0.26% | 0.16% | 0.31% | 0.29% | 0.16% | 0.27% | |
| INR | 0.14% | 0.11% | 0.04% | 0.14% | 0.13% | -0.16% | 0.12% | |
| CHF | 0.03% | -0.02% | -0.11% | 0.04% | 0.02% | -0.27% | -0.12% |
The heat map shows the percentage changes of the major currencies relative to each other. The base currency is selected from the left column and the quote currency from the top row. For example, if you select Indian Rupee from the left column and move along the horizontal line to US Dollar, the percentage change displayed in the box will represent INR (base)/USD (quote).
Daily Market Change Summary: Steady inflation data makes the US dollar more attractive
- The Indian rupee is gaining ground against the US dollar even as the latter remains mighty against other currencies following the release of US Consumer Price Index (CPI) data for December. At press time, the U.S. Dollar Index (DXY), which tracks the value of the U.S. dollar against six major currencies, is holding gains near a monthly high of 99.25.
- On Tuesday, the U.S. Bureau of Labor Statistics (BLS) showed that inflation pressures remain steady, keeping hopes alive that the Federal Reserve (Fed) will keep interest rates at current levels. On a year-over-year basis, the U.S. headline and core CPI were 2.7% and 2.6%, respectively.
- Richmond Federal Reserve President Tom Barkin called December’s inflation data “encouraging,” adding that he expected price pressures to remain moderate over the next few months, Reuters reported.
- US President Donald Trump welcomed persistent inflation data and put pressure on Fed Chairman Jerome Powell to cut interest rates further. We have very low inflation. “It would give ‘too late Powell’ a chance to get a nice, big rate cut,” Trump told reporters in Detroit, according to Reuters.
- Meanwhile, the Fed’s Powell faces criminal charges for cost overruns to renovate the Fed’s headquarters in Washington, which he called an “excuse” for not making monetary decisions in line with the president’s preferences. This event raised concerns about the Fed’s independence.
- In response, the heads of global central banks showed support for the Fed’s Powell, citing that “central bank independence is a cornerstone of price, financial and economic stability in the interest of the citizens we serve.”
- During Wednesday’s session, investors’ attention will focus on US Producer Price Index (PPI) data for October and November and retail sales data for November, which will be published at 13:30 GMT.
Technical Analysis: USD/INR remains around 91.50
At the time of writing, USD/INR is trading down near 90.3810. The price remains above the 20-day exponential moving average (EMA) at 90.29, maintaining a near-term bullish bias. The 20-day EMA is trending higher, supporting the path of least resistance to the upside.
The 14-day relative strength index (RSI) of 53 (neutral) is down from earlier readings, confirming moderate momentum.
As long as the pair holds above the rising 20-day EMA, the deviation remains positive and the decline remains supported, while a daily close below this indicator could open up space for a deeper pullback. An RSI hovering near the centerline suggests balanced conditions; a further weakening of dynamics would favor consolidation, while growth could provide a basis for extension of growth.
(The technical analysis for this story was written with the assist of an AI tool.)
Economic indicator
Consumer price index (y/y)
Inflationary or deflationary trends are measured by periodically summing the prices of a basket of representative goods and services and presenting the data as the Consumer Price Index (CPI). CPI data is compiled monthly and published by the Commission United States Department of Labor Statistics. A y/y reading compares commodity prices in a reference month with the same month a year earlier. CPI is a key indicator measuring inflation and changes in purchasing trends. Generally, a high reading is seen as bullish for the US Dollar (USD), while a low reading is seen as bearish.
Read more.
