- Indian Rupee (INR) is falling for a fourth day
- Indian US trade talks have stalled
- US Dollar (USD) is falling versus major peers
- Nerves are starting to show ahead of the August 1 deadline
The US dollar-to-Indian rupee (USD/INR) exchange rate rose for a fourth straight day. The pair rose +0.05% in the previous session, settling on Monday at 86.19. At 21:30 UTC, USD/INR trades 0.13% higher at 86.31 and trades in a range of 86.18 to 86.43.
The Indian rupee is under pressure, with attention remaining on the prospects of an interim trade deal between India and the US before the August 1st deadline. The likelihood of a deal has dimmed as talks remain deadlocked over tariff reductions on agriculture and dairy products.
Trump threatened 26% tariffs on Indian imports in April but paused these tariffs for 90 days. India has not received a letter informing it of a new level.
Trade negotiations between India and the US have stalled at a fifth round, and officials are exploring ways to navigate issues at this late stage. Both sides remain optimistic that a deal will get done.
The US Dollar is rising against the Rupee but falling against its major peers. The US Dollar Index, which measures the greenback against a basket of major currencies, is falling 0.48% to 97.38, marking the third straight day of losses.
The US dollar fell on Tuesday as investors grew concerned over the looming August 1 deadline for trade tariffs. With just over a week to go before the hard deadline, investors are starting to show signs of nerves. There have been few trade deals, and Trump has warned of high tariffs against major trading partners, including Canada, Mexico, Japan and the EU if no deal is reached.
The US economic calendar is quiet; attention will turn to Thursday’s PMI figures for more clues over the health of the economy.
So far US data has been holding up even with the tariffs that have been implemented already.