USD/INR faces uncertainty as India trade deal nears with Apple tariff risk

USD/INR trading dynamics face potential volatility as reports indicate a near-complete US-India trade deal, though Apple's manufacturing location remains a critical sticking point. President Trump's Friday threat of 25% tariffs on Apple products unless manufactured in the US directly conflicts with Apple's strategic shift of production facilities from China to India. This development could significantly impact USD/INR flows, as Apple's Indian manufacturing expansion represents billions in foreign direct investment. The currency pair currently trades near 84.50, with traders closely monitoring negotiations. A successful resolution favoring Indian manufacturing could strengthen the rupee through increased FDI inflows, potentially pushing USD/INR toward 84.00 support. Conversely, tariff implementation might trigger risk-off sentiment, driving the pair toward 85.00 resistance. The outcome will likely influence broader emerging market currencies and reshape US-India trade relations.