The rupee plunged to an intraday low of ₹87.4850 and settled at ₹87.4550 amid dollar strength and tariff anxieties.
Concerns over imminent U.S. tariffs up to 50% weighed heavily on sentiment, especially for exporters.
A stronger dollar and risk-off mood ahead of Jackson Hole amplified pressure.
Markets are pricing over an 80% probability of a Fed rate cut, but Powell’s to
ne may remain cautious.
Forward premiums and bond flows signal elevated fx and rate sensitivity.
Exporters face margin risk, while importers bear cost pressures on hedged exposures.
FX volatility underscores macro uncertainty ahead of global policy clarity.
Safe-haven sectors like pharma and defence may gain traction amid currency stress.
Positioning remains defensive until macro signals firm up.
FX watchers remain highly tuned to Jackson Hole updates.