As the US economy wobbles, the Indian rupee is gearing up for a surge—but will Trump’s tariffs spoil the party?
The Indian rupee is poised for a stronger opening today, thanks to a shaky US economic outlook and a surge in foreign investments. After a brief pause in its nine-day rally, the rupee is ready to bounce back, and here’s why.
A Weakening Dollar Boosts the Rupee
Recent data revealed a drop in US consumer confidence to a four-year low, sparking fears about the economy. This uncertainty has pushed the dollar down, giving currencies like the rupee a chance to rise.
Traders expect the rupee to open at 85.62-85.64 against the dollar, up from 85.7550 in the previous session.
Foreign funds are pouring back into Indian markets, with over $600 million invested in equities on Tuesday alone. In the last four days, total inflows have surpassed $2 billion, boosting the rupee’s upward momentum.
Experts attribute this surge to a softer dollar and investors unwinding their bearish bets on the rupee.
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All eyes are now on next Wednesday when US President Donald Trump will reveal new tariff plans. This has kept traders cautious, with the USD/INR expected to move between 85.50 and 86 until clarity emerges.
Meanwhile, weak US economic data and falling Treasury yields are adding to the dollar’s struggles.
What’s Next?
With foreign investments pouring in and the dollar under pressure, the rupee’s rally might continue—unless new tariffs shake things up. For now, the currency’s fate hangs on global economic signals and investor sentiment.
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