The Indian rupee edged stronger at ₹87.36–87.38/USD, recovering from Friday’s ₹87.53 close.
Powell’s dovish tone pushed global dollar weakness, aiding the rupee briefly.
However, upcoming U.S. tariffs on Indian goods—potentially rising to 50%—threaten to derail the gains.
Traders remain cautious, anticipating renewed outflows if trade tensions escalate.
Bond and equity markets may be sensitive to further tariff or diplomatic developme
nts.
The rupee’s near-term stability will depend on trade policy signals.
Buyers may take a cautious stance until tariff clarity emerges.
Financial stakeholders are watching closely for policy shifts t
hat affect FX.
Short-term strength remains fragile against geopolitical headwinds.
Elevated volatility is likely to remain on cards for the currency.