- The Indian rupe collides against the US dollar while the US president Trump points out a higher import tariffs for India.
- Trump pointed out the possibility of a tariff of 20% -25% on India.
- Investors expect the Fed monetary policy decision and the US key data.
The Indian rupee (INR) extends its loss streak against the US dollar (USD) on Wednesday and slides about 87.40. It was anticipated that the USD/INR would win more as the Indian rupee weakens, after the comments of the president of the United States (USA), Donald Trump, pointing out that Indian exports could face tariffs ranging between 20% and 25%.
On Tuesday, US President Trump said: “I think” by responding to journalists after they asked about the possibility of tariffs of 20% -25% in India imports.
Such scenario is unfavorable for Indian rupee, since the tariff rate indicated by President Trump is significantly higher than the one he has agreed in agreements with Indonesia, Vietnam, Japan and the European Union (EU). A higher tariff on India’s assets could reduce the competitiveness of Indian exports in the international market.
Meanwhile, President Trump also declared that tariffs charged by New Delhi on Washington imports have been significantly higher than those charged by other countries, and this should come to an end.
Indian rupee has remained as a low performance asset this week, since foreign institutional investors (FIIS) have sold their participations in Indian Variable Income Markets. Until now, the FIIS have sold shares worth 41,227.73 million rupees in the Indian bags. On Tuesday, there was an exit of 4,636.60 million rupees in shares by foreign portfolio investors in the cash market.
A significant weakness in the Indian currency against the US dollar has raided the way for the intervention of the Indian Reserve Bank (RBI) in the currency markets. A Reuters report showed that the Indian Central Bank will probably sell US dollars to limit the depreciation of the rupee.
Indian Rupia Price today
The lower table shows the percentage of change of the Indian rupee (INR) compared to the main coins today. Indian Rupia was the weakest currency against the Japanese yen.
| USD | EUR | GBP | JPY | CAD | Aud | INR | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.02% | 0.01% | -0.19% | 0.01% | 0.03% | 0.20% | -0.07% | |
| EUR | 0.02% | 0.06% | -0.26% | 0.00% | 0.03% | 0.16% | -0.01% | |
| GBP | -0.01% | -0.06% | -0.30% | 0.00% | -0.02% | 0.19% | -0.04% | |
| JPY | 0.19% | 0.26% | 0.30% | 0.28% | 0.29% | 0.42% | 0.21% | |
| CAD | -0.01% | -0.00% | -0.00% | -0.28% | 0.02% | 0.11% | -0.04% | |
| Aud | -0.03% | -0.03% | 0.02% | -0.29% | -0.02% | 0.16% | -0.01% | |
| INR | -0.20% | -0.16% | -0.19% | -0.42% | -0.11% | -0.16% | -0.20% | |
| CHF | 0.07% | 0.01% | 0.04% | -0.21% | 0.04% | 0.01% | 0.20% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the Indian rupee of the left column and move along the horizontal line to the US dollar, the percentage change shown in the table will represent the INR (base)/USD (quotation).
What moves the market today: Indian rupee descends against the US dollar before the Fed policy
- A higher performance of the US dollar, after the announcement of a tariff agreement between the US and the European Union (EU), has also been a key factor behind the USD/INR force.
- This weekend, officials from the Atlantic approved a commercial agreement, which decreased the fears of an interruption of global trade.
- Meanwhile, investors have changed their approach to the Federal Reserve Monetary Policy announcement (FED) at 18:00 GMT. According to the CME Fedwatch tool, the Fed is sure of maintaining stable interest rates in the range of 4.25%-4.50%. This would be the fifth consecutive policy meeting in which the US Central Bank will maintain interest rates at its current levels.
- As the Fed is expected to maintain the status quo, the main trigger for the US dollar will be the orientation of the central bank on inflation and the perspectives of interest rates for the rest of the year.
- Recently, a series of Fed officials warned that the impact of tariffs imposed by President Trump has begun to be reflected in prices, which decreases the attractiveness of monetary policy adjustments in the current scenario. The fears of a resurgence in price pressures increased after the June Consumer Price Index (ICC) show showed that the prices of goods that are largely imported to the economy have increased.
- In Wednesday’s session, investors will also focus on the preliminary data of the GDP of the second quarter and the Personal Consumption Expenditure Index (PCE), which will be published at 12:30 GMT.
Technical analysis: the USD/INR renews a maximum of four months about 87.40
The USD/INR pair records a new four months about 87.40 on Wednesday. The pair is firmly negotiated while the 20 -day exponential (EMA) mobile average is inclined up to 86.45, indicating a strong upward trend.
The 14-day relative force (RSI) index oscillates within the range of 60.00-80.00, suggesting a strong bullish impulse.
Looking down, the 20 -day EMA will perform as a key support for the pair. On the positive side, the maximum of February 28 around 87.70 will be a critical obstacle to the pair.
Economic indicator
Fed interest rates decision
The Federal Reserve (Fed) Delibera on monetary policy and makes a decision on interest rates in eight preprogrammed meetings per year. It has two mandates: maintain inflation in 2% and maintain full employment. Its main tool to achieve this is to establish interest rates, both to those that it lends to banks and to those that banks lend each other. If you decide to raise the fees, the US dollar (USD) tends to strengthen since it attracts more foreign capital tickets. If the rates lower, it tends to weaken the USD since capital is drained towards countries that offer greater returns. If the rates remain unchanged, the attention focuses on the tone of the Federal Open Market Committee (FOMC), and if it is a hard line (expectancy of higher interest rates in the future) or moderate (expectation of lower rates in the future).
Read more.
Next publication:
LIE Jul 30, 2025 18:00
Frequency:
Irregular
Dear:
4.5%
Previous:
4.5%
Fountain:
Federal Reserve
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
