• Indian Rupee (INR) under pressure after violent faceoff between Indian & Chinese troops
  • Clash overshadowed a broad risk on mood in the market after additional stimulus from the Fed
  • US Dollar (USD) investors look towards US retail sales, which are expected to show record jump of 8% in May
  • At 10:15 UTC, US Dollar Indian Rupee (USD/INR) trades +0.15% at 76.06

After gaining versus the weaker US Dollar in the previous session, the Indian Rupee is paring those gains in trading on Tuesday.

At 10:15 UTC, USD/INR is trading +0.15% at 76.06. This is towards the upper end of the daily traded range of 75.77 – 76.03.

The Indian Rupee is giving back yesterday’s gains and paring initial gains on Tuesday, amid a huge rise in border tensions, with China. An Indian army officer and two soldiers were killed during a violent faceoff with Chinese troops on the boarder. These are the first casualties in decades to result from a clash between the two countries in the sensitive Galwan Valley in eastern Ladakh.

The Indian Rupee had started the day on a stronger note amid risk on trading in the broader financial markets. The improved mood came following an announcement by the Fed in its efforts to support markets battered by the coronavirus crisis. The Fed said that it would start buying corporate bonds from today, as part of the previously announced programme to keep lending markets running smoothly.

Overnight the White House also indicated that it was weighing up an additional stimulus package, which would include $1 trillion infrastructure spend. This would go towards the more traditional infrastructure projects such as building roads and bridges, in addition to 5G and local broadband networks.

Investors will now turn their attention towards US retail sales for May which could provide clues as to how the recovery is progressing in the US economy. This was the month that the US started to ease lockdown restrictions and 2.5 million Americans returned to work.

Retail sales in May are expected to surge by a record 8% in May, after declining by a record -16.4% in April. A stronger reading could boost sentiment and pull the US Dollar lower, on the other hand, a weaker than forecast reading could suggest that consumers are not feeling confident enough to spend, unnerving investors 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.