- Indian Rupee (INR) rises for a fourth day
- Indian retail inflation cools to 3.34%
- US Dollar (USD) recovers from 3-year low
- Trump walks back some trade tariffs
The US dollar-to-Indian rupee (USD/INR) exchange rate is falling for a fourth straight day. The pair fell 0.20% in the previous session, settling on Monday at 86.02. At 21:30 UTC USD/INR trades -0.28% lower at 85.78 and is in a range of 85.49 to 86.02.
Indian move pain is tracking equity markets higher as Indian shares joined a global relief rally following Donald Trump’s signal of more tariff exemptions. The upbeat mood helped the Sensex recover losses from earlier this month, closing 2.19% higher.
On the data front, India’s retail inflation cooled to a more than five-year low as food prices continue to moderate. March CPI came in at 3.34%, down from 3.6% in February, marking the slowest increase since August 2019. Meanwhile, food inflation went to 2.69%, its lowest level since November 2021.
The data creates room for deeper central Bank rate cuts amid fears that the US-China trade war may hurt global growth.
The US Dollar is falling against the Rupee but rising against its major peers. The US Dollar Index, which measures the greenback against a basket of major currencies, is rising 0.53% on Wednesday to 100.17 after five days of losses.
The U.S. dollar rose at the start of the week but remains close to its three-year low. The U.S. economic calendar was quiet today, with only U.S. Empire manufacturing data showing some weakness, especially as the six-month forward index fell below COVID levels due to uncertainty from the new Trump administration.
Federal Reserve chair Jerome Powell will speak tomorrow, and the markets will be watching his comments closely amid the ongoing uncertainty surrounding Trump’s trade tariffs as Trump has walked back some tariffs.