The Indian Rupee lost its daily gains to end the day on Monday at the same level as the US dollar, as it stood at 87.66 on Monday, reports showed. The local unit had started the day on a higher note of 16 paise but lost energy to trade tensions and geopolitical uncertainty, where traders were wary before the much-awaited meeting between US President Donald Trump and Russian President Vladimir Putin later this week.
On a year-to-date basis of the current financial year, the rupee has declined by 2.4 per cent, as compared to 2.2 per cent in the calendar year. The continuous pressure exerted on the rupee is more indicative of the concerns with what is happening globally in the economic sense and the trade and relationship of the US to India.
The encounter between Trump and Putin that is bound to happen on Friday in Alaska is directed at sealing an agreement to bring to an end the war in Ukraine. Such a possible ceasefire would have a beneficial connection to India, especially since the extra 25 per cent tariff introduced by the US in the importation of Russian oil could be waived, relieving the Indian importers.
Elsewhere, investors are gearing up to see some important statistics on the US economy this week, beginning with the Consumer Price Index (CPI) and Core CPI report on Tuesday, and the crude oil inventory data on Wednesday. It is anticipated that these measures will affect the stability of the US dollar and the mood in the world markets.
In this case, the trade front, President Trump has gone ahead to say that any additional negotiations with New Delhi will never take place unless the current tariff-related dispute is addressed. This remark brings an additional doubt into the India-US trade relationship.
The dollar index that gauges the greenback against six leading currencies has appreciated by a small margin of 0.12 per cent to 98.29. The crude oil prices had continued to be pressured in the commodity markets due to the speculations of the US-Russia dialogue.
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