Overview

• The rupee opened at 87.82 per dollar on September 17, its first sub-88 start in two weeks, after a previous close around 88.05.
• Sentiment was supported by a phone call between Prime Minister Narendra Modi and U.S. President Donald Trump and by continuing New Delhi talks on a bilateral trade deal led by Brendan Lynch and Rajesh Agrawal.
• The dollar stayed weak ahead of the Federal Reserve’s decision expected late Wednesday in India, with the dollar index near two-month lows as investors positioned for a rate cut.
• Across September 15–16 the rupee traded in a tight 88.30 to 88.01 band and settled at 88.16 then 88.08, with traders citing RBI actions and large reserves as factors containing volatility.
• U.S. tariff measures, including duties of up to 50% on Indian goods and public warnings from Commerce Secretary Howard Lutnick, have pressured export prospects and remained a headwind for rupee sentiment.