Overview

• The rupee briefly firmed to 87.95 in early trade on September 9 before easing to about 88.10–88.12 by the close.
• Weak U.S. jobs data lifted expectations of Federal Reserve rate cuts, offering support that faded near the 88 per dollar level.
• Concerns over potential U.S. tariffs on Indian goods and continued foreign portfolio outflows weighed on the currency.
• Forex traders pointed to recent or potential RBI action to smooth volatility after the rupee’s record lows earlier this month.
• The market is watching U.S. CPI and next week’s Fed decision for direction after a session that saw equities rise and the dollar index slip.