USD/INR RECOVERS ON TRADE WAR WORRIES
USD/INR RECOVERS ON TRADE WAR WORRIES
On Thursday, April 17, 2025, the Indian Rupee (INR) declined, ending a five-day winning streak.
The depreciation was influenced by a weakening Chinese Yuan, attributed to escalating trade tensions between the U.S. and China.
This development exerted pressure on most Asian currencies, including the INR.
The INR's decline mirrored broader regional trends, where currencies such as the Chinese Yuan faced downward pressure due to intensified trade disputes.
The global market's risk-off sentiment led to reduced investor confidence in emerging market currencies.
Amid the U.S.-China trade tensions, there is a possibility of Chinese exporters redirecting goods to alternative markets, including India.
This shift could influence India's trade dynamics and impact the INR's performance in the coming weeks.
Traders and investors are advised to monitor developments in global trade policies and their potential effects on regional currencies.
