The rupee opened the week on a volatile note, buffeted by global trade headlines and shifting expectations over U.S. policy.
Currency swings stirred equity flows—exporters and importers scrambled to hedge amid the rupee weakening toward ₹88–89.
A weaker rupee serves as a double-edged sword—boosting IT margins but stoking inflation and complicating central bank pl
ans.
FX volatility also rattled investor sentiment, shaping flows across equity, bond, and commodity markets.
This played into the hands of IT; the currency tailwind helped the sector outperform sharply.
The backdrop of U.S. rate-cut hopes added lift—but FX remains a wildcard that could trigger su
dden shifts.
Firms with high import exposure or dollar debt will now face renewed margin scrutiny.
Traders increasingly leaned on forwards and option hedges to manage overnight FX risk
.
FX is once again at the heart of portfolio strategy—cross-asset sensitivities are aliv
e and well.
Key takeaway: Rupee moves aren’t mere noise—they’re shaping capital flows and sector rotations de
cisively.