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Rupee Gains Slightly Against Dollar Amid Trade Deal Hopes, Equities Fall as Tariff Talks Near

Rupee's Modest Rise Against the Dollar

The Indian rupee edged up by 3 paise to close at 85.70 against the US dollar on Thursday, buoyed by optimism surrounding a potential US-India trade agreement. Despite this, the equity markets witnessed a downturn.

Currency watch: Rupee ends 3 paise higher at 85.70 vs dollar; equities dip as tariff talks loom

Market Movements and Analyst Insights

Opening at 85.62, the rupee fluctuated between 85.53 and 85.70 throughout the trading session. Anuj Choudhary of Mirae Asset Sharekhan noted, "Rupee traded with minor gains on a weak US dollar and an overnight decline in crude prices." He also mentioned that weak domestic markets limited significant gains.

Trade Deal Prospects and Economic Implications

Expectations of a mini trade deal between the US and India could further bolster the rupee. However, global caution persists due to unresolved tariff issues. Choudhary anticipates the USD-INR spot rate to hover between Rs 85.40 and 85.95.

Upcoming Trade Negotiations

A commerce ministry team is set to travel to Washington for another round of talks, focusing on sectors like agriculture, automobiles, steel, and aluminum. "We are negotiating a complete deal," a senior official stated, hinting at the possibility of an interim agreement.

Global Economic Indicators

Brent crude prices dipped by 0.34% to $69.95 per barrel, while the dollar index saw a slight decrease of 0.15% to 97.41. Domestically, the Sensex and Nifty experienced declines, with foreign institutional investors net buying Rs 221.06 crore in equities.