- The USD/INR remains firm in the midst of growing commercial tensions between the US and China.
- The index composed of HSBC purchase managers in India fell to a minimum of 14 months of 57.7, from the previous reading of 59.2.
- Operators expect the non -agricultural payrolls of the US of Friday, which is expected to show a slight deceleration in job creation for January.
The USD/INR continues its bullish impulse for the fourth consecutive day, quoting around 87.10 during the Asian session on Wednesday. Indian rupee (INR), risk sensitive, remains under pressure due to the greatest risk aversion after the increase in commercial tensions between the US and China.
In the Economic Front, the index composed of Purchase Managers (PMI) of HSBC in India, seasonally adjusted, fell from 59.2 in December to a minimum of 14 months of 57.7. Despite the fall, reading is maintained above the long -term average, pointing out a continuous economic expansion. Meanwhile, the PMI of Services stood at 56.5 in January, reflecting strong growth, although it fell from 59.3 in December to its lowest level since November 2022.
In response to the new 10% tariff of the US that entered into force on Tuesday, China imposed a 15% tariff on the imports of liquefied coal and gas (LNG) of the USA, together with an additional tariff 10% on crude oil, agricultural equipment and certain cars.
Despite the growing commercial dispute between the United States and China, the operators remain optimistic about a possible resolution, similar to the agreements reached with Mexico and Canada. The president of the United States, Donald Trump, declared on Monday that he hopes to talk to China soon, but warned: “If we cannot reach an agreement with China, the tariffs will be very, very substantial.” However, no more developments have been reported.
Meanwhile, investors anticipate a 25 basic point rate cut at the next monetary policy meeting of the Bank of the India Reserve (RBI) on Friday, in the midst of a deceleration of economic growth. Market optimism has been even more driven by expectations after the FY2026 budget.
Looking ahead, operators expect the US Non -Agricultural Payroll (NFP) report on Friday, which is expected to influence the direction of the Federal Reserve Monetary Policy (FED). Consensus estimates suggest a slight deceleration in job creation for January 2025.
Economic indicator
HSBC manufacturing pmi
The index composed of purchasing managers (PMI), published monthly by S&P global and HSBC Bankit is a leading indicator that measures business activity in India. This indicator weighs together comparable manufacturing and services indices. using the official added value of manufactures and services. The index varies between 0 and 100, with 50.0 levels that do not indicate changes compared to the previous month. A reading greater than 50 indicates that the Indian private economy is expanding in general, an upward sign for Indian rupee (INR). Meanwhile, a reading of less than 50 indicates that the activity in general is decreasing, which is considered bassist for the INR.
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Last publication:
MIÉ FEB 05, 2025 05:00
Frequency:
Monthly
Current:
57.7
Dear:
57.9
Previous:
57.9
Fountain:
S&P global
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.