- Indian Rupee (INR) rises nd rises for a 7th day
- Indian services PMI rises to 58.7
- US Dollar (USD) falls versus major peers
- US trade tension worries rise
The US dollar-to-Indian rupee (USD/INR) exchange rate fell for a seventh straight day on Tuesday. The pair fell -0.27% in the previous session, settling on Monday at 84.29. At 17:30 UTC USD/INR trades -0.03% lower at 84.27 and is trading in a range of 84.21 to 84.62.
The Indian Rupee is pushing higher, trading at levels last seen in November 2024.On the data front, service sector growth picked up slightly in April as demand expanded, although business optimism remained weak.
The HSBC India servicing PMI increased to 58.7 in April from 58.5 in March, but this was down from preliminary estimates of 59.1. Level 50 separates expansion from contraction.
Delving deeper into the figures, new business volume, which is considered a key gauge for demand, rose sharply in April as it did in the two previous months.
To meet rising demand, service sector companies lifted their workforce numbers for a 35th straight month.
Adding to the upbeat mood, India also confirmed that it signed a trade deal with the UK after three years of negotiation.
The US Dollar is falling across the board. The US Dollar Index, which measures the greenback against a basket of major currencies is falling – 0.42% on Tuesday to 99.41, marking a third day of losses.
The US dollar is falling amid ongoing concerns over the U.S. economy due to Trump’s erratic trade policies.
Last week’s optimism about the escalating trade tensions between the US and China has stalled. The market is also getting nervous, as few trade deals have been pushed over the line. The 90-day pause for Liberation Day-level tariffs is ticking past, and little in the way of trade deals has been announced.
Trump announced over the weekend that he would impose 100% tariffs on movies made outside the US and, yesterday, that trade tariffs on pharmaceutical companies would have been announced.
Data from the US showed that the US trade deficit widened to a record level in March as companies rushed to import products. The import of consumer goods increased by the most on records, with the largest ever inflow of pharmaceuticals.
Looking ahead, the Federal Reserve interest rate decision is due tomorrow. The Fed is expected to leave rates unchanged.