- Indian Rupee (INR) rises 1.3% this week against the USD
- Oil prices fell 12% after the Iran-Israel peace deal
- US Dollar (USD) rises versus major peers
- US core PCE rose to 0.2% but personal spending fell -0.1%
The US dollar-to-Indian rupee (USD/INR) exchange rate is falling for a second straight day. The pair fell 0.46% in the previous session, settling on Thursday at 85.64. At 18:30 UTC, USD/INR trades -0.23% lower at 85.44 and traded in a range of 85.42 to 85.67. The pair is set to fall 1.3% this week, after four weeks of gains.
The Rupee is rising on Friday and is set to post its best weekly rise in over two years, as the Iran-Israel ceasefire continues to hold, pulling oil prices lower and boosting demand for riskier assets.
Oil prices fell 12% this week as the ceasefire in the Middle East reduced the risk of oil supply disruptions and the risk premium on oil evaporated.
Separately, India is reportedly close to being finalized soon, according to President Trump. This comes after negotiations reportedly hit a rough patch earlier in the week.
The US Dollar is falling against the Rupee but is rising against its major peers. The US Dollar Index, which measures the greenback against a basket of major currencies, is rising 0.15% to 97.28, after 5 days of losses.
The dollar is rising on Friday, but is still hovering around its lowest level since April 2022 as investors digest news of the trade agreement between the US and China, as well as the latest inflation data.
A trade agreement has been signed between the US and China, formalizing China’s commitment to export rare earth shipments to the US, while the US will lower its countermeasures. The move sends a positive sign that relations are improving between the world’s two largest economies as they move past the trade war.
Meanwhile, data showed that the US core PCE, the Federal Reserve’s preferred gauge of inflation, ticked up to 0.2% month-over-month, up from 0.1%. However, consumer spending unexpectedly fell by 0.1% in May, marking the second decline this year. That drop in consumer spending comes as consumer confidence has deteriorated due to Trump’s erratic policies.
