- Trade discussions between Modi and Trump continue amid tariff tensions.
- Affecting USD/INR and global risk sentiment.
- Potential indirect impact on crypto markets and risk assets.
The recent call between Indian Prime Minister Narendra Modi and U.S. President Donald Trump mainly impacts USD/INR dynamics and global trade sentiment, affecting risk assets indirectly. Modi described the conversation as positive, focusing on trade relations.
Summarized:
Modi and Trump’s engagement amid rising tariffs could affect USD/INR exchange rates and global trade sentiment, indirectly influencing cryptocurrency markets.
Trade Relations Discussion
Modi and Trump engaged in a telephone call, the third since August, to discuss trade relations amid rising US tariffs on Indian imports. The call highlights geopolitical dynamics between the two nations, focusing on trade and economic collaboration. Modi and Trump Discuss US-India Trade Amid Tariff Tensions
Modi confirmed the call as a positive interaction on X, emphasizing bilateral relations and global stability efforts. Trump has yet to release a detailed statement, uncommon for such high-level discussions, noted by Indian officials.
Narendra Modi, Prime Minister of India, said: “Had a very warm and engaging conversation with President Trump. We reviewed the progress in our bilateral relations and discussed regional and international developments. India and the U.S. will continue to work together for global peace, stability and prosperity.”
Impact of Tariffs and Economic Implications
Tariffs affect India’s economic ties with the US, influencing USD/INR rates and global trade sentiment. An unresolved trade deal could lead to increased market volatility, impacting both nations economically.
India’s Commerce Minister Piyush Goyal is advocating a finalized trade agreement, noting mostly resolved trade issues. Piyush Goyal, Minister of Commerce & Industry, publicly stated: “We have made our best ever offer for the trade agreement, and we hope the US will finalize it soon.” Source
India’s current capital control policies remain strict, with significant economic implications for both domestic and global markets.
Trade Talks and Cryptocurrency Markets
Modi’s discussions with Trump may influence macroeconomic conditions, potentially affecting Bitcoin and Ethereum through global trade sentiment impacts. Historical trade tensions have correlated with shifts in risk assets, influencing cryptocurrency markets.
The present call’s outcomes may shape Indian-US relations, with potential long-term effects on global trade policies and local market regulations. Cryptocurrency markets remain sensitive to macroeconomic changes, highlighting the need for close monitoring of geopolitical events.
