The Indian rupee was little changed around 88.7 per USD, trading in a sideways range, as upbeat comments from US President Trump on a potential India-US trade deal offered limited support. Trump said the US is close to a deal that would deepen economic and security ties and eventually lower tariffs on Indian goods. However, the rupee’s muted response reflects repeated similar statements and market skepticism, with traders noting the currency is likely to react only once a deal is finalized. The prolonged absence of an agreement has weighed on sentiment, contributing to the rupee’s underperformance this year. Meanwhile, the US dollar firmed on hopes for an end to the record-long US government shutdown, adding further pressure to the rupee, already strained by persistent hedging demand and muted foreign portfolio inflows, even as market interventions since late September have helped it hold above its record low of 88.80.
