The USD/INR advances while the US dollar goes back in the midst of tariff uncertainty

• Indian rupee can be seen against the US dollar to about 85.65.
• India is in no hurry to sign a commercial pact with the USA.
• FOMC minutes suggest that officials are concerned about inflation caused by tariffs.

Indian rupee (INR) wins strongly in front of the US dollar (USD) Thursday. He USD/INR It falls to about 85.65, while investors expect the confirmation of the trade agreement between India and the USA (USA) To evaluate the address.

Last week, US president, Donald Trump, said more than once Washington is close to reaching an agreement with India. However, the comments of the Minister of Commerce and Supplies of India, Piyush Goyal, indicated that New Delhi is in no hurry to sign the agreement, stating that a pact will not close until it is confident that it is of national interest.

“India does not negotiate under deadlines,” Goyal said and added, “we negotiate taking into account national interest, and national interest is essential in all our commitments worldwide.”

An NDTV report showed on Thursday that both nations seek to reduce general tariff barriers to promote a healthy competitive environment. In addition, New Delhi seeks to protect their agricultural sector and companies intensive in labor, such as leather, footwear and clothing, from the competition of US companies.

A delay in confirmation of a commercial agreement between India and the US has weighed on Indian Variable Income Markets. The NIFTY50 falls almost 100 points below 25,400, while the Sensex30 decreases 0.3% below 83,300.

Another reason behind the strength of Indian rupee is the growing hope of a decrease in the price of short -term oil, since OPEC+ announces an increase in oil production greater than expected, which is expected to support Indian rupee. The currencies of nations that depend largely on oil imports, such as Indian rupee, work well in a lower oil prices environment.

What moves the market today: Indian rupee lies upwards against the US dollar

• Indian rupee moves upwards against the US dollar. While the US dollar is contained contained in the midst of uncertainty around tariff policy.
• On Wednesday, President Trump revealed another lot of reciprocal tariffs for seven countries that failed to ensure a commercial agreement during the 90 -day pause period. However, the impact of the announcement of new tariff rates is expected to be limited, since it does not include countries with which the US performs significant businesses.
• Considering the current state of Washington’s commercial negotiations with nations such as the Eurozone, China, Canada and Mexico, it is unlikely that President Trump will impose high tariffs on them. Until now, the main US business partners who have been subject to reciprocal tariffs are Japan and South Korea.
• Meanwhile, Donald Trump has also declared that the 50% proposed tariffs on copper imports will enter into force as of August 1, the same date on which their reciprocal tariffs will be executed, while stating the importance of the base metal in several companies.
• In the front of the monetary policy, the minutes of the policy meeting of the Federal Open Market Committee (FOMC) of June 17-18 have indicated that the majority of the Federal Reserve (FED) officials believe that the cuts of interest rates are appropriate later this year if the inflation driven by tariff turns out to be “limited and temporary,” Reuters said. The minutes also indicated that officials considered that interest rates were not well above the neutral level. Only a “pair of participants pointed out that they would be open to consider a rate cut as soon as at the July meeting.”
• According to the CME Fedwatch tool, the Fed is almost safe to maintain interest rates in the current range of 4.25% -4.50% at the policy meeting at the end of this month.

Technical Analysis: The USD/INR decreases after facing pressure above the 20 -day EMA

The USD/INR falls about 85.70 when opening on Thursday. The PAR faces a sale above the exponential (EMA) mobile average of 20 days, which is negotiated around 85.87, suggesting sales pressure at higher levels.

The 14 -day relative force (RSI) index falls below 50.00. A new bearish impulse would arise if the RSI breaks below 40.00.

Looking down, the minimum of May 27, 85.10 will act as a key support for the torque. Upwards, the minimum of June 24 at 86.42 will be a critical obstacle to the torque.