- Indian Rupee (INR) falls but gained last week
- Indian stocks closed the worst session in 10 weeks
- US Dollar (USD) rises against its major peers
- US remains close to multi-month lows
The US dollar-to-Indian rupee (USD/INR) exchange rate is rising for a second straight day after losing last week. The pair fell 0.04% in the previous week, settling on Friday at 85.50. At 21:30 UTC USD/INR trades -0.64% higher at 86.50 and is in a range of 84.93 to 85.81.
The Indian rupee fell on Monday, and Indian stock markets closed with their worst session in 10 months, as a selloff was fueled by concerns over US trade tariffs. The Nifty 50 lost 3.24%, and the BSE Sensex fell 2.95%.
Since the US tariff announcements on April 2, the market value of all NSE-listed companies has fallen by $280 billion.
Investors are selling out of Indian stocks as they attempt to quantify the uncertainty unleashed by Trump’s trade tariffs. Buyers may be reluctant to step in until there is more clarity surrounding the tariff outlook.
Institutional investors sold Indian shares worth $1.05 billion on Monday, the highest daily outflow since February 28; meanwhile, domestic institutional investors bought $1.41 billion of shares.
The US Dollar is rising across the board. The US Dollar Index, which measures the greenback against a basket of major currencies, is rising 0.47% on Monday to 103.51 but still fell 0.9% last week.
The US dollar is rebounding on Monday, recovering from earlier losses and tracking treasury yields higher.
Hawkish comments from Fed Governor Kugler supported the greenback when she said that inflation concerns from tariffs were more pressing than worries about economic growth.
The dollar remains close to multi-month lows amid concerns that an escalating trade war could derail the economy and prompt the Fed to cut rates sooner. The US dollar is facing a confidence crisis as the US seeks to renegotiate its trade agreements with its partners, prompting some to liquidate their dollar-denominated assets.
