- Indian Rupee (INR) falls for a second day
- Foreign investors have sold $12 billion in 2025
- US Dollar (USD) rises against its major peers
- Safe-haven flows lift the greenback
The US Dollar to Indian Rupee (USD/INR) exchange rate is rising for a second straight session. The pair rose 0.27% in the previous session, settling on Monday at 87.90. At 18:00 UTC USD/INR trades 0.1% higher at 89.89 and is in a range of 86.84 to 87.01
The Rupee is moving lower along with its regional peers amid the risk-off trade. Markets are sensitive to the possible impact of trade tariffs on growth and inflation.
Foreign investors have net sold $12 billion of local Indian equities, exerting pressure on the Rupee.
Today the Indian benchmark index settled flat following sharp falls after weak earnings and foreign outflows.
The US Dollar is rising across the board. The US Dollar Index, which measures the greenback against a basket of major currencies, is rising 0.4%, at 107.07, snapping a five-day losing run.
The U.S. dollar is rising, recovering from a two-month low reached last week. The USD tracks the 10-year treasury yield as higher.
The dollar is rising on safe-haven flows amid concerns over trade tariffs and peace negotiations on the Russia-Ukraine conflict.
Investors are monitoring the talks between US and Russian officials to end the Ukraine war. Ukraine president Zelensky insisted no peace deal could be made behind his country’s back.
Separately, U.S. President Trump threatened new tariffs on the European Union due to its trade surplus. Concerns over trade tariffs triggering a global economic slowdown also boosted safe-haven flows.
Meanwhile, San Francisco Fed president Mary Daly said another rate cut this year will become increasingly hard to justify.
Attention will now turn to the FOMC minutes due to be released tomorrow, which could shed more light on the Fed’s outlook for interest rates.