- The Indian rupee lies upwards against the US dollar even though the dollar stands firm.
- The impact of Trump’s tariffs has begun to leak into prices.
- Investors expect the confirmation of the commercial agreement between the US and India.
Indian rupee (INR) recovers early losses and rises against the US dollar (USD) on Wednesday. He USD/INR It slips about 85.85 even when the US dollar extends its rise after operators reduce the dovish bets of the Federal Reserve (Fed), after signals from the United States Consumer Price Index (CPI) (USA) for June that the tariffs announced by President Donald Trump have begun to feed inflation.
The dollar index (DXY), which follows the value of the dollar against six main currencies, firmly quotes about a maximum of three weeks around 98.60.
The IPC report showed on Tuesday that general inflation accelerated at an expected pace both monthly and annually, while underlying readings did not reach estimates. However, they were higher than the May publication. The report also indicates that the prices of the products imported by the US, such as home furniture, recreation and clothing, increased dramatically as importers began to transfer the impact of the highest tariffs on consumers, which led operators to reassess their expectations on the perspective of monetary policy of the Fed.
According to the CME Fedwatch tool, the probability that the Fed cuts interest rates at the September meeting has been reduced to 55.5% since 64.7% observed a week ago.
Market experts have also warned that the impact of Trump tariffs has not yet moved completely to prices, since US importers accumulated inventories before the announcement of reciprocal tariffs on the so -called “Liberation Day” in April. In addition, the impact of tariffs announced on 22 countries and trade agreements with some nations is still to be filtered. The lack of clarity on inflation driven by tariffs will encourage Fed officials to keep interest rates at their current levels for longer.
If the recent tariffs threatened for August 1 enter into force, it will take a few months to feel that additional impulse in inflation in the prices of the goods and will keep the Fed aside, unless the labor market suffers a sudden turn towards the negative side, “said Ryan Sweet, head economist of the United States in Oxford Economics, according to Reuters.
What moves the market today: Indian rupee exceeds its peers with hope of a commercial agreement between the US and India
- Indian rupee exceeds its peers on Wednesday in the hope that the US and India soon reach a commercial agreement. On Tuesday, US President Trump expressed confidence in closing an agreement with India after announcing a commercial agreement with Indonesia and added that the Pact will also allow US companies to access Indian markets.
- The confirmation of a commercial agreement between the US and India will protect the export-oriented companies of India from the threat of higher tariff compete in a highly populated country.
- The stage of US companies entering India will be unfavorable for Indian corporations, since Washington has the competitive advantage of high capital and technology. This could affect business feeling, impact the variable income markets and reduce the foreign investment flow of direct and institutional investors.
- However, the Minister of the Piyush Goyal Union injected confidence on Tuesday by stating that both nations are working to achieve a “win-win agreement”, said Financial Express (Fe). Goyal added that the team led by the Chief Commercial Negotiator of India, Rajesh Agrawal, will carry out the next round of commercial negotiations on Wednesday.
- Meanwhile, Indian indices have opened with a cautious note since the first quarter’s profit season has begun. The NIFTY50 opens 0.17% lower than 25,150. The Sensex30 below 82,500. Another reason behind the caution trend in Indian actions is Trump’s last threat to impose tariffs on imports of pharmaceutical products by the end of the month. Trump said Tuesday that he will begin with lower tariffs before moving on higher tariffs to allow national pharmaceutical manufacturers to increase their capacity. Since India is a key exporter of pharmaceutical products to the US, tariffs on Indian pharmaceutical companies could significantly impact their growth.
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 strongest currency against the US dollar.
| USD | EUR | GBP | JPY | CAD | Aud | INR | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.15% | -0.08% | -0.01% | -0.07% | -0.16% | -0.28% | -0.04% | |
| EUR | 0.15% | 0.08% | 0.12% | 0.07% | -0.06% | -0.09% | 0.13% | |
| GBP | 0.08% | -0.08% | 0.06% | 0.02% | -0.11% | -0.20% | 0.05% | |
| JPY | 0.01% | -0.12% | -0.06% | -0.07% | -0.10% | -0.26% | 0.01% | |
| CAD | 0.07% | -0.07% | -0.02% | 0.07% | -0.10% | -0.21% | 0.03% | |
| Aud | 0.16% | 0.06% | 0.11% | 0.10% | 0.10% | -0.06% | 0.16% | |
| INR | 0.28% | 0.09% | 0.20% | 0.26% | 0.21% | 0.06% | 0.19% | |
| CHF | 0.04% | -0.13% | -0.05% | -0.01% | -0.03% | -0.16% | -0.19% |
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).
Technical analysis: USD/INR faces sales pressure above 86.00
The USD/INR goes back after visiting the maximum of three weeks of 86.15 on Wednesday. The short -term trend of the torque has become uncertain since it struggles to stay above the 20 -day exponential (EMA) mobile average, which quotes around 86.00.
The 14-day relative force (RSI) index oscillates within the range of 40.00-60.00, suggesting that the asset lacks impulse in any direction.
Looking down, the minimum of May 27, 85.10 will act as a key support for the torque. On the positive side, the minimum of June 24 at 86.42 will be a critical obstacle to the pair.
Economic indicator
Consumer Price Index (Annual)
Inflation or deflationary trends are measured by periodically adding the prices of a basket of representative goods and services and presenting the data such as the consumer price index (CPI). IPC data is collected monthly and are published by the Labor Statistics Office of the USA The interannual reading compares the prices of the goods in the month of reference with the same month of the previous year. The CPI is a key indicator to measure inflation and changes in consumption trends. In general terms, a high reading is considered bullish for the US dollar (USD), while a low reading is considered bassist.
Read more.
Last publication:
Mar Jul 15, 2025 12:30
Frequency:
Monthly
Current:
2.7%
Dear:
2.7%
Previous:
2.4%
Fountain:
US Bureau of Labor Statistics
The US Federal Reserve (FED) has a double mandate to maintain price stability and maximum employment. According to this mandate, inflation should be around 2% year -on -year and has become the weakest pillar of the Central Bank directive since the world suffered a pandemic, which extends until these days. Price pressures continue to increase in the midst of problems in the supply chain and bottlenecks, with the consumer price index (IPC) at maximum levels of several decades. The Fed has already taken measures to tame inflation and it is expected to maintain an aggressive position in the predictable future
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.
