The Indian rupee hovered around 88 per USD on Friday, trading sideways near four-week highs, but poised for its strongest weekly gain since late June, after the Reserve Bank of India’s deliberate intervention turned short sellers cautious. The central bank took a forceful stance against heavy selling pressure, selling dollars through state-run banks. The move helped ease strains on the rupee from US tariffs, tighter immigration rules, foreign outflows, and rising gold import costs. Meanwhile, investors weighed mixed signals in US-India trade developments. Relations have been strained since Trump imposed a 50% tariff on Indian goods over New Delhi’s Russian oil purchases, though he signaled a possible resolution on Wednesday, saying Modi had committed to halt such imports. India’s Foreign Ministry, however, said it was unaware of any conversation, while New Delhi maintained that Russian oil imports will continue if economically viable. Officials also said talks with the US are ongoing.
