The USD/INR wins while Trump points out that US and India will reach an agreement before the deadline of tariffs

• The Indian rupee quotes slightly down against the US dollar, since the latter is stabilized after the surprisingly optimistic data of US Jolts employment offers.
• Trump’s comments indicated that the US and India will end a commercial agreement before the deadline of July 9.
• Powell of the Fed reiterates that the Central Bank needs more data before considering cuts in interest rates.

The Indian rupee (INR) faces sales pressure against the US dollar (USD) during European negotiation hours on Wednesday. He USD/INR It falls to about 85.82 while the US dollar struggles to gain ground after the publication of the surprisingly optimistic data of US Jolts jobs data for May. The data showed on Tuesday that US companies published 7,769 million jobs, more than 7,395 million April.

He Dollar index (DXY), which follows the value of the dollar against six main currencies, rises to about 96.75 during press time. On Tuesday, the dollar index attracted offers after falling to about 96.40, the lowest level seen since February 2022.

Meanwhile, the prospects for Indian rupee have improved since the comments of the President of the United States (USA) Donald Trump have indicated that Washington and New Delhi are close to reaching a commercial agreement with much less tariffs before the deadline of July 9.

The president of the United States Trump has also expressed confidence that the lowest tariffs of India will allow US companies to compete with Indian businesses, a scenario that could impact the sales of Indian manufacturers.

“I think we are going to have an agreement with India. And it will be a different type of agreement. It will be an agreement where we can enter and compete. At this time, India does not accept anyone. I think India will do that, and if they do, we will have an agreement with much lower tariffs,” Trump said, Ani News said.

This occurs after the main negotiator of India, Rajesh Agrawal, extended his stay in Washington to finish a commercial agreement before the deadline of tariffs, according to Ani’s report.

Daily summary of market movements: Indian rupee falls against the US dollar

• The Indian rupee contributed contained against the US dollar while the latter gains temporary ground after the surprisingly optimistic data of US employment offers.
• However, the prospects of the US dollar remain weak since operators are confident that the Federal Reserve (FED) will reduce interest rates at the September meeting, and the uncertainty around the deadline of tariffs and fears of an increase in the US fiscal deficit after the imposition of the so -called “great beautiful invoice” of Trump.
• Meanwhile, the president of the FED, Jerome Powell, reiterated when speaking at a meeting of central banks in Portugal on Tuesday that the Central Bank needs more time to know the impact of new economic policies on inflation and the labor market before considering adjustments in monetary policy. “We are simply taking time, and while the US economy is in good shape, we believe that the prudent is to wait and learn more and see what those effects could be,” Powell said, according to Reuters.
• For more clues about monetary policy perspectives, investors expect the US non -agricultural payroll data (NFP) for June, which will be published on Thursday. Operators could increase moderate bets of the Fed if the data point to signs of weakness in the labor market. On the contrary, optimistic labor data would force operators to reduce bets that support cuts in Fed’s interest rates in September.
• In Wednesday’s session, investors will focus on US employment change data for June, which will be published at 12:15 GMT. Economists expect private US employers to have hired 95K new workers, significantly more than May 37K.
• On the commercial discussions between the US and Japan, Washington has expressed uncertainty about reaching an agreement with Tokyo before the deadline of tariffs of July 9. “We have dealt with Japan. I am not sure that we are going to make an agreement. I doubt it,” Trump said speaking with journalists at the Air Force One earlier this week.
• The passage of Trump’s tax and expenses cuts bill to the Chamber again for consideration before moving to the president’s desk after being approved by the Senate controlled by Republicans has raised fears of an increase in US debt US Sovereign, which was already reduced from AAA to AA1 by Moody’s rating in May.

Technical analysis: USD/INR is maintained below the 20 -day EMA

The USD/INR torque ranges from Tuesday’s negotiation range around 85.75 on Wednesday. The perspective of the PAR remains bassist since it remains below the exponential mobile socks (EMA) of 20 and 50 days, which quote around 85.79 and 85.70, respectively.

The 14 -day relative force (RSI) index remains below 50.00, indicating that the trend is down.

Looking down, the 200 -day EMA around 85.35 will act as a key support for the torque. On the positive side, the maximum of Wednesday of 86.13 will be a critical obstacle to the pair.