Rupee Holds Steady Amid US-India Trade Tensions
The Indian rupee ended flat against the US dollar at 87.58, aided by foreign fund inflows despite uncertainties over US-India trade. Forex traders reported narrow trading range influenced by weak equities and potential US tariff hikes. Brent crude prices saw a slight increase, impacting market dynamics.
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The Indian rupee managed to end the week steady at 87.58 against the US dollar on Friday, buoyed by an inflow of foreign funds and a weakening American currency. This was despite looming uncertainties over a potential US-India trade deal, which discouraged broader market enthusiasm.
Forex traders observed the rupee trading within a tight range as domestic equity markets weakened. President Trump's aggressive trade policies, threatening up to a 50% tariff on selected Indian exports, added pressure to the rupee, although declining crude oil prices provided some relief.
The dollar index's decline of 0.16% displayed the US currency's weakness, which, combined with the US's internal economic challenges, likely offered the rupee some support. However, Trump's recent tariff announcements and the subsequent market reactions underscore the fragile state of international trade relations.
(With inputs from agencies.)
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