INR Holds Ground Against USD as Trade Deal Hopes Build

The Indian Rupee (INR) remained stable against the US Dollar (USD) on Friday, trading around 85.55. Investors are waiting for confirmation of a trade agreement between India and the United States before the July 9 tariff deadline. This news has kept the currency market calm despite recent global fluctuations.

US markets were closed on Friday for Independence Day, and the US Dollar Index (DXY), which measures the strength of the Dollar against major currencies, fell slightly below 97.00.

Progress on India-US Trade Agreement

According to NDTV, India and the US may announce a trade agreement within 48 hours. Both countries are aiming to lower trade barriers and create a fair, competitive environment. However, India wants to protect key sectors like agriculture, footwear, textiles, and leather from increased foreign competition.

US President Donald Trump commented earlier this week that the deal will help American companies compete better in the Indian market. He also hinted at reducing tariffs if India opens up more to US businesses.

FIIs Sell Ahead of Tariff Deadline

Foreign Institutional Investors (FIIs) have been cautious, selling ₹5,012.95 crores worth of Indian stocks in early July. Investors are closely watching trade talks and tariff news, which could affect market sentiment.

Major indices like Nifty and Sensex were slightly lower on Friday due to this uncertainty.

US Jobs Data Weakens Dollar Sentiment

The US Nonfarm Payrolls (NFP) report showed stronger-than-expected job growth in June, mainly from government hiring. Private sector job additions were weak, indicating companies are still uncertain due to the ongoing trade policies.

Fed officials are now under pressure to consider rate cuts to support the slowing job market. However, the chance of a July rate cut has dropped sharply after the jobs report.

Read more: Why Are PSU Banks Like PNB, Canara, and Others Removing Minimum Balance Penalties?

Conclusion

The Indian Rupee remains firm as investors await a trade deal between India and the US. While technical indicators show a bearish trend for USD/INR, all eyes are on the July 9 deadline. Traders should stay alert to policy changes and global signals for clearer direction in the currency markets.

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