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The Indian Rupee edges lower in Tuesday’s Asian session. Fresh foreign capital inflows and a weaker Dollar underpin the INR; higher crude oil prices might cap its upside.  Investors brace for Fedspeak and CB’s Consumer Confidence report later on Tuesday.   The Indian Rupee (INR) softens on Tuesday after closing stronger for the ninth consecutive session in the previous session. The persistent US Dollar (USD) sales from foreign banks and a sign of revival in foreign inflows provide some support to the Indian currency, helping the INR claw back all of its losses in 2025 so far. Nonetheless, a rise in crude oil prices could exert some selling pressure on the local currency. It’s worth noting that India is the world’s third-largest oil consumer and higher crude oil prices tend to have a negative impact on the INR value. Traders await  Fedspeak, along with the Conference Board’s Consumer Confidence gauge, New Home Sales and the Richmond Fed Manufacturing Index, which will be published later on Tuesday.  Indian Rupee loses ground on higher crude oil prices The HSBC India Manufacturing Purchasing Managers Index (PMI) rose to 57.6 in March from 56.3 in February. The Indian Services PMI eased to 57.7 in March versus 59.0 prior. The Composite PMI declined to 58.6 in March from 58.8 in February.   “India’s manufacturing sector expanded at a faster pace in March … The output index rose to its highest level since July 2024,” said Pranjul Bhandari, Chief India Economist at HSBC. Trump said late Monday that he will announce tariffs on automobile imports in the coming days and indicated that some countries will receive breaks from reciprocal tariffs on April 2. Trump signaled trading partners would receive possible exemptions or reductions. Trump also stated that he planned to proceed with sector-specific tariffs on lumber and semiconductors…

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Filed under: News - @ March 25, 2025 3:27 am