The Indian Rupee surged to near 85.50 against the US Dollar during Monday’s European session, extending its gains from Friday. The move comes as the US Dollar begins the week on a weaker footing, with global attention turning to renewed trade talks between the United States and China scheduled for later in the day.
The US Dollar Index (DXY), which tracks the Greenback’s performance against a basket of six major currencies, slipped back to around 99.00 following a modest rebound on Friday.
Fueling optimism, US President Donald Trump confirmed via a post on Truth Social that top American officials will meet Chinese counterparts in London on June 9.
“I am pleased to announce that Secretary of the Treasury Bessent, Secretary of Commerce Lutnick, and United States Trade Representative, Ambassador Greer, will be meeting in London on Monday, June 9, 2025, with Representatives of China, with reference to the Trade Deal. The meeting should go very well,” Trump wrote.
On the Chinese side, the Ministry of Foreign Affairs confirmed that Vice Premier He Lifeng will attend the talks during his June 8–13 visit to London. The ministry stated the meeting would mark the “first meeting of the China-US economic and trade consultation mechanism.”
The revival of dialogue between the two economic superpowers has lifted hopes for a breakthrough, which could offer broader support to global risk sentiment and stabilize US assets that have been under pressure amid tariff tensions.
Markets are eyeing the negotiations closely, given the impact of the previous trade war, which escalated following reciprocal tariffs imposed by Washington and Beijing—initially triggered by Trump’s “Liberation Day” tariff announcement on April 2.
While any meaningful progress from the London meetings could eventually benefit the US Dollar, the immediate tone remains cautious, allowing emerging market currencies like the Indian Rupee to gain ground in the short term.
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