Indian PM Narendra Modi and US President Donald Trump met at the G7 summit in France, reporting "significant progress" on a long-awaited trade deal. The leaders instructed officials to work towards a balanced agreement. The meeting also touched on the Iran war's impact on the Global South.
The Indian Rupee opened lower against the US dollar, falling over 20 paise to 94.71 due to the Federal Reserve's hawkish policy stance and a stronger global dollar. Despite this, market sentiment was boosted by a potential US-Iran agreement and ongoing trade talks between India and the US.
US and Indian trade officials are in New Delhi for crucial talks to finalize an interim trade pact before a July 24 tariff deadline. The negotiations are significantly influenced by a US Section 301 investigation into India's excess manufacturing capacity and potential forced labor imports.
The Indian Rupee strengthened by 40 paise to 95.20 against the US dollar, driven by global market optimism over a potential US-Iran peace deal and progress in US-India trade talks. Early Monday trade saw the rupee open at 95.36 and rise to 95.20.
Government sources indicate no immediate plans to hike gold and silver import duties, despite calls to curb non-essential gold purchases. Meanwhile, India anticipates US trade talks addressing pending issues, including a Section 301 probe, though a comprehensive deal remains distant. India has contested US allegations of structural overcapacity, urging the termination of the investigation.
