- Indian Rupee (INR) rises on Friday but falls across the week
- India-Pakistan tensions rise further
- US Dollar (USD) falls versus major peers
- US – China trade talks take place this weekend
The US dollar-to-Indian rupee (USD/INR) exchange rate fell on Friday after three days of gains. The pair rose 0.96% in the previous session settling on Thursday at 85.53. At 22:30 UTC USD/INR trades -0.15% lower at 85.40 and is traded in a range of 85.28 to 85.95. The pair rose 1.1% across the week.
The Indian rupee rose on Friday but fell across the week as Indian-Pakistan tensions escalated.
In the latest developments, Pakistan’s defence minister has denied reports that a meeting of the National Command Authority, which is Pakistan’s top military body overseeing the nuclear arsenal, was scheduled.
Meanwhile, residents across both Pakistan and India are stockpiling food and other essentials. Amazon clashes between the nuclear-armed nations escalated. Both sides are accusing the other of launching new missile attacks using drones and artillery for a third day in the worst fighting between the two nations in almost 3 decades.
The US Dollar fell across the board on Friday. The US Dollar Index, which measures the greenback against a basket of major currencies, fell 0.3% on Wednesday to 100.34, snapping a two-day losing streak.
The USD fell on Friday but rose across the week after a US-UK trade deal boosted hopes surrounding the upcoming US-China talks this weekend.
On Thursday, President Trump announced the US-UK trade deal, which maintained a 10% baseline tariff but lowered volumes on cars, steel, and aluminium.
The sense is that the worst of the trade war and tariffs are behind us, and the Trump administration is looking to make deals with different countries.
This weekend, the US and China will meet for ice-breaker discussions. The bar is relatively low, with no trade deal expected; however, if the two sides agreed to a date to formally start trade negotiations, it would be considered a win.
Any trade developments will continue to move the market, with U.S. economic data playing second fiddle.
