FX.co ★ Indian Rupee Falls for 3rd Session

The Indian rupee declined to approximately 87.43 against the US dollar on Monday, marking its third consecutive session of depreciation. The currency has been under strain due to impending US tariffs. As of Wednesday, tariffs on Indian goods will increase to as much as 50%, in addition to the existing 25% duties, in reaction to India’s importation of Russian oil. Current trade negotiations with Washington face significant constraints, as India's Foreign Minister emphasized the necessity of protecting farmers and small-scale producers. Market participants are closely observing the Trump-Putin discussions for any indication of a Ukraine-Russia peace agreement that might alleviate tariff pressures. However, the overall sentiment remains guarded, especially since President Trump cautioned last Friday that he might enforce sanctions on Russia within two weeks if there is no progress towards a resolution. In the midst of these concerns, the rupee received some reprieve due to the US Federal Reserve's dovish approach. The US dollar experienced pressure after Chair Powell hinted at the possibility of a rate cut during the September meeting at the Jackson Hole symposium.