The Indian Rupee (INR) experienced selling pressure during Thursday’s Asian trading session following the announcement of a 26% tariff on Indian imports by former US President Donald Trump, effective April 9th. This development contributed to broader weakness observed in Asian equity and currency markets. The new tariff policy is exerting downward pressure on the INR. However, declining crude oil prices, a potentially mitigating factor given India’s status as the world’s third-largest oil consumer, may limit further INR depreciation. Market participants are now focused on upcoming US economic data releases, including weekly Initial Jobless Claims, the final S&P Global Services PMI, and the ISM Services PMI, scheduled for release later on Thursday. The US March Nonfarm Payrolls report, due Friday, will also be closely monitored.
