Overview

• The Indian rupee closed at about 86.15 per dollar, marking its weakest finish since late June and sliding 0.4% over the past week.
• A robust U.S. dollar driven by strong economic data has curtailed expectations of Fed rate cuts, adding to rupee pressure.
• Stalled four-day India-U.S. trade negotiations and net foreign equity outflows have compounded the currency’s downward momentum.
• Retail inflation in India eased to a six-year low in June, intensifying market wagers on Reserve Bank of India rate reductions.
• Traders are bracing for Fed Chair Jerome Powell’s remarks and evaluating potential RBI interventions to stabilise the rupee.