USD Index Falls on CPI, Jobless Data; Rupee Hits Record Low Amid Tariff Impact
Key Takeaways
- US Dollar Index fell below 97.859 amid rising CPI and jobless claims.
- Indian rupee hits lifetime low of 88.37 against USD amid US tariff impact.
- Fitch downgraded France's debt rating to A+ citing rising public debt and instability.
- Fitch upgrades Portugal's credit rating to A, citing fiscal prudence and growth.
- SEBI approves IPO and mutual fund reforms to enhance investor protection.
Top Stories
US Dollar Index falls amid rising CPI and jobless claims, boosting Fed rate cut bets
On September 11, 2025, US Dollar Index dropped below 97.859 as August CPI rose 0.4% to 2.9% YoY and jobless claims hit a four-year high of 263,000. These indicators increased market expectations for a 25 basis point Federal Reserve rate cut next week.
Indian rupee hits lifetime low of 88.37 against USD amid US tariff impact
On September 11, 2025, the Indian rupee fell to a record low of 88.37 per US dollar, pressured by ongoing US tariff impacts on India's trade and financial outlook.
France inflation slows; Fitch downgrades debt rating to A+ amid political instability
On September 12, 2025, France's inflation slowed to 0.8% YoY in August, while Fitch downgraded France's debt rating from AA- to A+ citing rising public debt and political instability, with ECB holding rates steady.
Fitch upgrades Portugal's credit rating to A, citing fiscal prudence and growth
On September 12, 2025, Fitch raised Portugal's credit rating from A- to A with a stable outlook, crediting reduced public debt, prudent fiscal policy, and robust economic growth.
SEBI approves broad regulatory reforms and mutual fund industry changes
On September 12-13, 2025, SEBI approved reforms easing IPO rules, simplifying foreign investor compliance, and tightening mutual fund regulations to enhance investor protection and market efficiency.
Financial Analysis
India's GDP growth forecast steady at 6.5%; RBI rate cut anticipated
On September 12, 2025, Crisil projected India's FY26 GDP growth at 6.5% with an expected RBI rate cut, citing US tariffs and external shocks as downside risks.
Geopolitics
G7 finance ministers reaffirm opposition to Russia's war amid recent escalations
On September 12, 2025, G7 finance ministers met virtually to condemn Russia's war in Ukraine and recent escalations, including a drone incursion into Polish airspace.
Market Insights
US Treasury yields decline amid mixed data, Fed rate cut expectations unchanged
On September 11, 2025, US Treasury yields fell with two-year at 3.51% and ten-year near 4.02% after mixed inflation and labor data, keeping market expectations for a Fed rate cut next week steady.
US consumer sentiment drops to 55.4; inflation expectations stable or rising
On September 12, 2025, the University of Michigan reported US consumer sentiment fell to 55.4, below forecasts, while 12-month inflation expectations remained at 4.8% and five-year expectations rose to 3.9%.
US and Asian markets rally on Fed rate cut hopes; Oracle shares surge 36%
On September 11-12, 2025, US stock futures and Asian markets rose on expectations of Fed rate cuts, with Oracle shares surging 36% due to AI-driven cloud contracts, while gold hit highs above 1980 levels.
Brazilian real falls to 13-month low post-Bolsonaro conviction amid carry trade gains
On September 12, 2025, the Brazilian real dropped to R$5.35, its lowest in 13 months, following Bolsonaro's conviction, with analysts citing political stability and US interest rate cut expectations benefiting carry trade.
Ocado shares drop 11% after Kroger questions US warehouse partnership
On September 12, 2025, Ocado Group Plc shares fell up to 11% after Kroger Co., its largest US partner, expressed doubts about their warehouse network's future profitability.
Policy Watch
Russia's central bank cuts key rate to 17% amid high inflation and credit growth
On September 12, 2025, the Bank of Russia cut its key interest rate by 1 percentage point to 17%, marking the third consecutive cut to combat inflation and support credit growth.
EU Parliament pushes for tariff limits in EU-US trade deal, raising tensions
On September 12, 2025, the European Parliament advocated adding a sunset clause to the EU-US trade deal to limit tariff cuts on US industrial goods, potentially increasing trade tensions.
Ex-RBI Governor calls US policies self-destructive, warns India worst hit
On September 12, 2025, former RBI Governor C. Rangarajan criticized US economic policies as self-destructive, highlighting negative impacts on India and advocating for freer global trade.