USD/INR Spikes as US Trade Court Blocks Trump’s ‘Liberation Day’ Tariffs

USD/INR Spikes as US Court Blocks Trump’s ‘Liberation Day’ Tariffs

The USD/INR currency pair surged during Thursday’s early European session as the Indian Rupee (INR) weakened. The move comes in response to a US trade court decision blocking former President Donald Trump’s “Liberation Day” tariffs, providing a fresh bid for the US Dollar (USD).

Month-End Dollar Demand and Crude Oil Pressures INR

Typical month-end USD demand contributed to INR weakness. Additionally, rising crude oil prices—with India being the world's third-largest oil importer—added pressure to the Rupee. The increase in energy costs raises India’s import bill, putting downward pressure on its currency.

Investors Await Key US Data Releases

Later today, markets will focus on the second estimate of US Q1 GDP, alongside Initial Jobless Claims and Pending Home Sales data. Several Federal Reserve officials, including Thomas Barkin, Austan Goolsbee, Adriana Kugler, and Mary Daly, are also scheduled to speak, potentially influencing USD sentiment.

Broader Market Context

While the short-term trend favors USD strength, concerns about US fiscal and trade policy could undermine investor appetite for US assets and reintroduce the “Sell America” narrative, possibly dragging the USD lower in the near term.

Internal Links for Tredu.com

• USD/INR Technical Analysis
• US GDP Data: What to Expect
• Impact of Crude Oil Prices on INR
• Latest Federal Reserve Commentary