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Why is the Indian Rupee falling, but the stock market is stable after the delay in the India-US trade deal?

USD vs INR: Following a sharp sell-off after the imposition of Trump's tariffs on India, the Indian Rupee has fallen around 6% in 2025. Experts don't expect any sign of recovery of the Indian National Rupee (INR) against the US Dollar (USD) until the India-US trade deal is signed. The Indian stock market is also facing challenges following Trump's tariffs, as FIIs have been selling out aggressively in the Indian markets.

Why is the Indian Rupee falling, but the stock market is stable after the delay in the India-US trade deal?

Credit: Livemint

Key Highlights

  • However, compared to the Indian Rupee, the Indian stock market has shown resilience.
  • The Nifty 50 index has been in a tight range of 25,250 to 26,300 for an extended period.
  • Following the optimistic signals from Indian and US officials regarding developments in the India-US trade deal, the 50-stock index has been trading at the upper end of the range, between 25,700 and 26,300.
  • This sparks a question: Why is the Indian Rupee falling, but the Indian stock market is showing resilience or has remained stable in a particular range for a long time?
  • Highlighting the reason for the Indian Rupee fall and stock market's resilience at the same time, Ponmudi R, CEO of Enrich Money, said, "The question of whether USD/INR could drift closer to the 100 level in 2026 is no longer confined to market speculation; it has steadily entered serious macroeconomic and policy discussions.
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Sources

  1. Why is the Indian Rupee falling, but the stock market is stable after the delay in the India-US trade deal?

This quick summary is automatically generated using AI based on reports from multiple news sources. The content has not been reviewed or verified by humans. For complete details, accuracy, and context, please refer to the original published articles.

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