Rupee may test 88.5 levels amid tariff tensions, FPI selloff: Analysts

Indian Rupee outlook: Analysts suggest that the local unit might largely stay range-bound between 86.50 to 88.50 levels

The Indian Rupee is expected to be vulnerable in the short term as the US President's 50 per cent tariffs have triggered a risk-off sentiment from foreign portfolio investors (FPIs). However, the Reserve Bank of India's (RBI) intervention might cap heavy losses in the currency. 

 

Analysts noted that the domestic unit is likely to remain range-bound, with the currency falling to the 88.5 level in the worst-case scenario. 

 

The Rupee is currently trading near the 87.6 mark and has depreciated 2.39 per cent so far this year, with July's fall being the worst since September 2023.

 

Donald Trump on Wednesday