The Indian rupee experienced relief after being excluded from the latest round of U.S. tariff hikes. This development has positive implications for India’s economy, bringing stability amidst global trade tensions. Asia largely dismissed the impact of recent moves by former U.S. President Donald Trump to increase tariffs on specific imported goods.
The region’s resilience amidst these trade policy changes is noteworthy. Turkey’s foreign and defence ministers are scheduled to visit Pakistan on Wednesday. They will discuss bilateral ties, regional issues, and defence industry cooperation with Prime Minister Shehbaz Sharif, according to a Turkish diplomatic source.
The exemption is expected to bring relief to the Indian economy, which has been navigating various global economic challenges. The region seems prepared to handle the ebbs and flows of international trade dynamics, focusing on fostering stronger economic and diplomatic relations. The rupee rose 26 paise to close at 85.68 against the US dollar on Tuesday.
This was supported by a decline in global crude oil prices and a weaker greenback. Foreign fund inflows and firm domestic equity markets also contributed to the rupee’s gains. At the interbank foreign exchange, the rupee opened at 85.75 against the US dollar.
It traded within a narrow range of 85.64-85.80 before settling at 85.68, up 26 paise from the previous close. On Monday, the local unit had settled at 85.94 against the US dollar after a steep fall of 54 paise.
Rupee gains amid US tariff exclusion
Anil Kumar Bhansali, Head of Treasury and Executive Director of Finrex Treasury Advisors LLP, said, “The rupee was range bound with chances of a US-India mini-trade deal being concluded today, keeping the rupee on an upward trend. The closing was slightly higher, but a conclusive mini-trade deal could allow the rupee to gain once again towards 85.30/40 levels.” He added that the local unit is expected to trade in the range of 85.30-86.00 on Wednesday, with expectations of positive developments. In early trade today, the Indian Rupee appreciated by 22 paise to 85.72 against the US Dollar.
This increase comes amid positive trends in domestic equities and a weakening of the American currency in the overseas market. The recent strength in the Rupee is supported by renewed foreign fund inflows and a decline in crude oil prices. The performance of the Indian Rupee is also buoyed by optimistic investor sentiment towards emerging markets.
Two crew members were reported dead following an attack on a Greek vessel in the Red Sea, as confirmed by the Liberian shipping delegation. This incident has raised concerns over the security of maritime routes in the region. India is engaged in discussions with Australia to source rare earth minerals, a senior official disclosed.
This move is part of India’s strategy to secure essential minerals to ramp up its manufacturing capabilities in high-tech sectors. A fresh plea was filed in the Supreme Court seeking a special intensive revision of electoral rolls across the country. This plea aims to address and rectify discrepancies in voter lists, ensuring a more transparent and accurate electoral process.
An FIR has been registered against cricketer Yash Dayal over allegations of sexual exploitation, adding to the controversies surrounding the cricketing community. These varied events reflect the dynamism of the current global and domestic scenarios, affecting financial markets, international relations, and legal proceedings in India.