April 1, 2024
New Delhi, India
USDINR
The Indian Rupee (INR) traded lower on Tuesday, pressured by renewed US Dollar (USD) demand and global trade war fears linked to Trump’s upcoming tariffs. Rising crude oil prices further weighed on the currency.
Key Drivers Impacting INR
US Trade Tariffs Weigh on Sentiment: Traders remain cautious ahead of Trump’s tariff policy announcement on Wednesday.
Crude Oil Prices Add Pressure: As the world’s third-largest oil consumer, India faces risks from rising energy costs.
USD Demand Strengthens: Renewed interest in the greenback limits INR’s upside.
Foreign Inflows Provide Support: Easing domestic inflation and increased stock and bond investments may cushion INR losses.
Upcoming Market Events
US ISM Manufacturing PMI (March): Investors will assess economic strength and its impact on Fed rate expectations.
JOLTS Job Openings & S&P Global Manufacturing PMI: Key labor and economic indicators to provide further market insights.
Fed Officials’ Stance on Inflation: Richmond Fed’s Tom Barkin and New York Fed’s John Williams signal a cautious approach to rate cuts.
Market Outlook
While foreign inflows support INR, global trade risks, USD demand, and oil prices keep the currency under pressure. Traders now await US economic data for further direction.
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