Indian Rupee Depreciates on Fed Hawkishness

The India — Indian rupee depreciated by 21 paise to 94.71 against the US dollar in early trade on Thursday, primarily due to the US United States — Federal Reserve's hawkish stance and the broad strength of the American currency. The dollar index rose to a 4-month high of 100.23 after the United States — Federal Reserve held interest rates steady but implied a potential quarter-point rate hike later this year. This led to a weakening of Asian currencies, including the India — Indian rupee. Despite this, some optimism emerged from reports that the United States and Iran electronically signed a memorandum of understanding to end hostilities and establish a framework for nuclear program negotiations. Additionally, Prime Minister Narendra Modi and US President Donald Trump directed officials to work towards a mutually beneficial trade agreement, with US Trade Representative Jamieson Greer expected to visit India for further talks. Brent Crude prices also traded lower, offering some relief to India's external position.