The Indian Roupie increased on Friday and recorded its highest weekly increase in more than a year, helped by relief in the Asian exchange space on the fact that US President Donald Trump did not impose customs duties Immediately after taking office.
The roupine closed up 0.3% to 86.2050 for an American dollar, and was up 0.5% this week, the highest since the week ended on August 25, 2023.
However, she underwent her regional peers. The Korean won increased by almost 2 % and the Chinese yuan climbed by 1.3 %.
The dollar index was down 1.7% since the start of the week, after Trump, who had threatened to impose customs duties in Canada, Mexico, the European Union and China, did not immediately put them into force.
In another interview, Trump also suggested that he could conclude a trade agreement with the second world economy.
In the absence of “prejudicial titles of Trump on customs duties”, the dollar has experienced difficulties, said Srinivas Puni, CEO of Quantart Market Solutions.
-“The USD/INR is finding a range around 86.50 for the moment. However, it remains vulnerable in the longer term given the internal problems linked to the current and flows,” He declared.
Portfolio flows to India were low due to uncertainty surrounding Trump policies, sluggish growth and higher American yields. Since the beginning of the month, foreigners have withdrawn more than $ 7 billion from Indian shares.
Dollar/rupe bonuses, on the other hand, extended their decreases this week, the reserve Bank of India having carried out purchase/sale swaps in parallel with its cash interventions.
The implicit yield of Dollar/Roupie’s term contracts is decreased by almost 50 base points compared to its recent summits, to 2.29 %.
