USD/INR continues its upward momentum for the fourth consecutive day

Trading around 87.10 during Wednesday’s Asian session

The risk-sensitive Indian Rupee (INR) remains under pressure

USD/INR has been on an upward trend for the past four days, with the currency pair trading around 87.10 during Wednesday’s Asian session. This increase in the exchange rate can be attributed to the heightened risk aversion in the market, largely fueled by rising trade tensions between the US and China.

The Indian Rupee (INR) is considered a risk-sensitive currency, meaning that it tends to weaken in times of heightened market uncertainty. The recent escalation in trade tensions between the world’s two largest economies has led to increased risk aversion among investors, causing them to seek safe-haven assets such as the US Dollar.

As a result, the Indian Rupee has come under pressure, causing its exchange rate against the US Dollar to rise. This trend is expected to continue as long as trade tensions remain high and investor sentiment remains cautious.

Overall, the outlook for the USD/INR exchange rate remains uncertain, with further gains likely if trade tensions continue to escalate. Investors should keep a close eye on developments in the US-China trade relationship, as they will have a significant impact on the movement of the Indian Rupee.

How this will affect me?

If you are an individual or business that deals with foreign exchange transactions involving the Indian Rupee, the recent increase in the USD/INR exchange rate will have a direct impact on your bottom line. You may need to adjust your currency hedging strategies or budget forecasts to account for the higher exchange rate.

How this will affect the world?

The continued rise in the USD/INR exchange rate is indicative of the broader economic uncertainty caused by the ongoing trade tensions between the US and China. This has the potential to disrupt global trade flows, leading to increased market volatility and potentially impacting the global economy as a whole.

Conclusion

In conclusion, the USD/INR exchange rate is likely to continue its upward momentum in the coming days as trade tensions between the US and China remain high. Investors should closely monitor developments in the market and adjust their strategies accordingly to mitigate any potential risks associated with the increased exchange rate.