The Indian rupee opened 7.6 paise higher on Tuesday, January 21, 2025, trading at 86.36-86.38 to the dollar in the 1-month non-deliverable forward market, compared to its previous close of 86.5675. The movement was largely influenced by U.S. dollar fluctuations driven by news surrounding U.S. President Donald Trump’s tariff plans.
During the Asian session, the dollar index fell to a two-week low of 107.86 after reports suggested that the Trump administration would not immediately impose trade tariffs. An official stated that Trump plans to issue a broad trade memo on his first day in office that stops short of implementing new tariffs.
The dollar index rebounded to 108.40 after Trump indicated plans to impose tariffs on Canada and Mexico by February 1. This announcement reignited concerns over potential inflationary impacts, influencing currency and trade markets.
The 1-month USD/INR non-deliverable forward briefly dipped below 86.40 before climbing to 86.62, reflecting the market’s sensitivity to the shifting stance on trade policy from the U.S.
Trump’s tariff plans remain a focal point for global investors. The extent and implementation of these tariffs will determine whether the dollar’s rally since his election victory is sustained.
Additionally, with tariffs likely to have inflationary effects, this policy could shape the Federal Reserve’s outlook on interest rate cuts for the year.
Oil prices remained under pressure as U.S. President Donald Trump pledged to declare a national emergency to boost domestic energy production while refraining from unveiling China-specific tariffs on his first day in office.
West Texas Intermediate (WTI) crude for March delivery dropped toward $76 a barrel, while Brent crude settled near $80. Instead, according to news reports, Trump directed his administration to address unfair trade practices on a global scale.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Jan 21, 2025, 9:09 AM IST
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
