indian-rupee-bank-notes - INR

GBP/INR is returning to Monday levels after it touched the weekly low at 91.550. The pair started to rally yesterday and is now trading at 92.519, up 0.50% as of 6:25 AM UTC.

The rupee is suffering along with the national currencies of all trade-reliant economies as US President Donald Trump signed a bill that supports pro-democracy protesters in Hong Kong. The move angered China, which might negatively affect the trade negotiations.

Trump said that he didn’t want to impact the trade talks, admitting that he didn’t agree with some parts of the bill voted last week by the US Congress. However, China responded by summoning US Ambassador Terry Branstad, with Vice Foreign Minister Le Yucheng asking him to stop interfering in Hong Kong affairs.

Nevertheless, some economists hope that the situation won’t touch the trade talks between the world’s two largest economies.

David Zweig, professor at the Hong Kong University of Science and Technology, said that while China is enraged by the fact that the bill will push Hong Kong protesters to become more violent, the situation will probably won’t affect trade negotiations so much. Zweig, who is also director of Transnational China Consulting, commented:

This is not a fundamental challenge to U.S.-China trade negotiations. It’s another notch in US-China hostility; it’s Congress being more assertive than usual, but I think it will be a short-term response, not even a medium-term response. Xi wants a deal, I think.

On Tuesday, Trump said that the two countries were in the “final throes” of a phase one trade deal that would see tariff rollbacks on goods worth about $500 billion. The President likely wants to handle the agreement as soon as possible to ease the economic pressure ahead of his re-election campaign next year. On the other side, China is also looking to prevent further deterioration of an economy that now struggles with the worst slowdown in decades.

The rupee is also under pressure ahead of gross domestic product (GDP) data release. Two local TV channels reported that the country’s quarterly growth is likely to be around 4%, citing government sources. This is way lower than most rating agencies predict. is a news site only and not a currency trading platform. is a site operated by TransferWise Inc. (“We”, “Us”), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on do not represent our views.