Rupee Gains Amid Uncertain US Tariff Policies

The Indian rupee has shown signs of recovery, closing at 85.7725 against the dollar, while benefiting from recent U.S. tariff exemptions on electronics. Despite a volatile environment due to ongoing uncertainties in U.S. trade policies and fluctuating Federal Reserve rate expectations, the rupee's rise contrasts with other Asian currencies that are generally weaker. The dollar index remains below 100, reflecting market skepticism about the U.S. economy and investor caution, with recent withdrawals from Indian equities further impacting sentiment. Analysts suggest that while the rupee may find support in the short term, its trajectory will be closely tied to developments in U.S. trade discussions, particularly with major partners like South Korea and Japan. The Reserve Bank of India's recent rate cuts aim to stimulate growth amid these global challenges, but the overall outlook remains uncertain. Traders anticipate the rupee to fluctuate within the 85.70 to 86.70 range amid these pressures.