The Indian rupee weakened to about 93.3 per dollar on Tuesday, retreating after a brief period of stability as domestic policy shifts and geopolitical uncertainty weighed on sentiment. The currency came under pressure following the Reserve Bank of India’s decision to partially unwind recently imposed foreign-exchange restrictions. Those measures, introduced only a few weeks earlier, had supported the rupee by limiting arbitrage opportunities between onshore and offshore markets. Their rollback is now viewed as increasing trading flexibility but also as reintroducing volatility into currency flows.
External risks further dampened sentiment, with the US–Iran truce set to expire midweek. President Donald Trump indicated the deadline was unlikely to be extended without progress toward a broader agreement, emphasizing he would not be “rushed into making a bad deal.” Although additional talks, including a possible meeting with Iranian representatives, are under discussion, details remain uncertain and Iran has previously signaled reluctance to continue negotiations.
