Key Highlights
- The fall comes despite positive commentary from Commerce Minister Piyush Goyal, who confirmed that India–US trade negotiations are progressing well, though he cautioned against negotiating with deadlines or hard stops.
- He also clarified that the recent US trade team visit was not part of the negotiation round. Why Is The Rupee Falling?
- One of the key factors weighing on the rupee is the delay in concluding the India–US trade deal.
- According to Harshal Dasani, Business Head at INVAsset PMS, the weakness in the rupee is not directly linked to the strength of the US dollar.“The dollar index has eased from its recent highs after the Fed’s rate cut and softer US macro prints, indicating that global dollar momentum is actually weakening.
- Yet USDINR continues to stay elevated, and the key reason is the delay in the India–US trade deal,” Dasani said. Markets had priced in progress on tariff rationalisation and improved market access, but the lack of a clear announcement has created a temporary sentiment overhang, he added. ALSO READRupee's New Lows, 100% FDI In Insurance Cos, And Ozempic's India Launch — The Week That WasOpinionRupee's New Lows, 100% FDI In Insurance Cos, And Ozempic's India Launch — The Week That WasRead MoreFed Rate Cut Fails To Support Rupee The rupee’s fall has come even after the US Federal Reserve cut interest rates by 25 basis points, a move that typically supports emerging market currencies.
