- Indian Rupee (INR) rises after 3 days of losses
- Rupee was a top regional performer
- US Dollar (USD) falls against its major peers
- The market shrugs off more trade tariff threats
The US Dollar to Indian Rupee (USD/INR) exchange rate is falling after three days of gains. The pair rose 0.03% in the previous session, settling on Wednesday at 86.89. At 22:00 UTC USD/INR trades 0.51% lower at 89.44 and is in a range of 86.43 to 86.91
The Indian Rupee rose to a weekly high on Thursday, boosted by USD sales from foreign banks and a weaker USD.
The Rupee was the top performer among regional peers, including the Chinese yuan and Japanese yen. Trump’s comments that a new trade deal with Beijing was possible boosted the yuan and its peers.
The Rupee has recovered from a record low after being weighed down by persistent portfolio outflows, uncertainty surrounding global trade, and expectations of the RBI easing monetary policy.
The US Dollar is falling across the board. The US Dollar Index, which measures the greenback against a basket of major currencies, fell 0.74% on Thursday, falling to 106.33.
The USD is falling as traders become numb to Trump’s trade tariffs after softer data US data. Trump said that he would announce more trade tariffs in around a month, including lumber and forest products, in addition to previously announced plans to apply tariffs to automobiles, semiconductors, and pharmaceuticals.
The market is not reacting to tariff threats in the same way it did in November following the elections or even in January.
On the data front, initial jobless claims rose 5000 to 219000 for the week ending February 15, ahead of the 215,000 forecast. Meanwhile, the Philadelphia Fed’s monthly manufacturing index fell 26.2 points, marking the most significant decline in five years. The data points to the US economy showing some signs of slowing.