Overview

• The rupee traded around 88.77 per dollar in early Monday dealings, hovering near its all-time closing low as the Reserve Bank of India continued to curb depreciation near 88.80.
• President Donald Trump announced 100% levies on Chinese exports and new export controls, weakening risk sentiment and feeding pressure on emerging-market currencies.
• India’s 10-year benchmark yield ended Friday at 6.5370%, with traders expecting a 6.49%–6.55% range this week as odds of a December rate cut rise.
• Economists polled by Reuters expect September CPI near 1.7%, below the RBI’s 2–6% target range, and Governor Sanjay Malhotra signaled low inflation creates room for easier policy.
• Foreign exchange reserves edged down by USD 276 million to USD 699.96 billion, while IFA Global advised calibrated hedging, and Bloomberg reporting spurred talk of RBI using NDF positions to steady the rupee.