FX.co ★ Indian Rupee Slips on Tariff Uncertainty

The Indian rupee weakened to about 90.7 per dollar, extending the previous week’s losses as markets reacted to renewed uncertainty over US trade policy. Investors are closely watching the implications of the Supreme Court’s decision to strike down former President Trump’s emergency tariffs, as well as his subsequent move to impose a temporary 15% levy on imports.

Attention is also centered on India’s decision to postpone its trade delegation to Washington, a step that could trigger a reassessment of New Delhi’s US trade strategy. At the same time, traders are monitoring oil prices and evolving supply–demand conditions in global markets.

On the positive side, analysts highlight that India’s effective tariff rate in the US is now estimated at 11–13%, lower than initially feared and comparatively favorable versus many regional peers. Markets are therefore weighing the near-term relief from reduced tariff exposure against ongoing policy uncertainty and broader global risk factors.