USD/INR: Trade Deal Rumor Boost Rupee to 26-day High

The rumor about a trade deal with China boosted Indian Rupee against the US dollar to a 26-day high, closing higher for the 4th consecutive day. On the currency market, the value of Rupee continued to appreciate by 21 paise settling at 70.45 against the US dollar.

Thursday’s trading session saw the USD/INR exchange rate fluctuate within the range of 70.90 — 70.45.

During the early Asia trading hours, the USD/INR exchange rate was seen quoted within a range of 70.44 — 70.71 as Rupee give back some of its post-deal rumor gains. The dollar index, which gauges the greenback’s strength against a basket of major currencies, crashed to a 22-weeks low as a result of the UK election results. Safe haven currencies have been dumped in favor of more high-risk currencies.

In other news, an anonymous source said that the world’s two most powerful economies in the world have come to a “deal in principle” (as per CNBC reports) to resolve the 17-month trade war between the US and China.

The Trump administration made some concessions and offered not to purse the new tariff hikes scheduled to go into effect on 15 December. Additionally, the White House proposed slashing existing tariffs by 50% on the $360 billion in Chinese imports.

“Getting VERY close to a BIG DEAL with China. They want it, and so do we!” the US President Donald Trump wrote on Twitter.

Later on, a new report revealed that the US President “signed off” the trade deal in an effort to avert the new round of tariff hikes going into effect. From the other side, reports are suggesting that China has yet to accept the new trade deal which prompted INR selling during the Asia trading session.

Elsewhere, in Asia, China is on track to target economic growth of 6% in 2020 according to Nikkei sources. The downbeat forecast comes as the trade war with the most powerful economy in the world continues to weigh on the country.

The domestic benchmark equity index NIFTY 50 closed on a positive tone during Thursday’s trading session and settled at 11971, but gaped higher during early Asia trading hours on trade optimism. Year-to-date the Indian stock market has gained 10.97%, benefiting from foreign investment inflow.

During early Asia trading hours, NIFTY 50 was seen gaping higher and quoted at 12067. The Indian 10-year government bond yield was seen quoted at 6.81 versus 6.78 previous closing prices. 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.