Indian rupee weakened, nearing all-time lows around ₹88.30 per USD, driven by dollar strength and higher U.S. yields.
Asia FX markets broadly slid, especially against a backdrop of a perceived hawkish stance by the Fed.
Optimism about rate cuts has dimmed somewhat due to U.S. economic data.
The weakness in rupee increases cost pressures for import-dependent sectors.
Export-oriented firms may benefit from currency tailwinds.
Traders are watching USD/INR risk levels closely for support zones.
Sudden swings in favour of the dollar could amplify volatility in In
dian equity flows.
Capital flows (FIIs/DII) and bond yields remain sensitive to forex shifts.
Policy or RBI commentary may be required to stabilize forex sentiments.
Overall, rupee trend remains a key variable for both equities and inflation.