- Indian Rupee (INR) fell below 91 per dollar
- India exports to the US rose 22% YoY
- The US Dollar (USD) is falling versus major peers
- US unemployment rose to 4.6%
The US dollar-to-Indian rupee (USD/INR) exchange rate is rising for a fourth straight day. The pair rose 0.21% in the previous session, settling on Monday at 90.79. At 16:30 UTC on Tuesday, the pair is rising 0.42% at 91.16.
The Indian rupee breached the 91 per dollar threshold for the first time today, pressured by increased hedging activity, portfolio outflows, and a deadlock in trade negotiations between the US and India.
The repair has fallen more than 6% against the US dollar so far in 2025, making it one of the worst-performing emerging-market currencies, as steep US tariffs on Indian exports have unnerved investors and increased portfolio outflows.
However, data today showed the Indian exports jumped in November despite 50% tariffs on all goods entering the US. The data showed that shipments to the US work move rose more than 22% in November from a year earlier, outpacing India’s overall export growth of over 19%. This data has tempered some fears of a prolonged tariff-led slump, and some believe it has strengthened India’s hand in U.S. trade talks.
The US Dollar is rising against the Rupee but is falling versus its major peers. The US Dollar Index, which measures the greenback against a basket of major currencies, is down 0.25% to 98.07.
The U.S. dollar is falling after a mixed non-farm payroll report. The US economy added 64,000 jobs in November, exceeding expectations of 50,000. This came after the economy shed 105,000 jobs in October, according to the labour department data.
Meanwhile, the unemployment rate jumped to six 4.6% up from 4.4%, pointing to further weakness in the jobs market.
Following the data, market expectations that the Fed would leave rates on hold at the January meeting fell to 73%, down from 75%.
Other data also pointed to a slowdown in the US economy, with the S&P 500 global manufacturing PMI declining to a 5-month low of 51.8 and the services PMI falling to 52.9.
