Rupee holds steady as markets balance U.S. dollar strength and looming tariff talks

The Indian rupee closed today at around ₹85.39 per U.S. dollar, oscillating within a narrow range as global investors weighed solid U.S. job data against expectations of a forthcoming trade deal with Washington. Traders are keeping an eye on the July 9 deadline, when U.S. tariffs on select Indian goods could be implemented. Any breakthrough could strengthen the rupee, but current market sentiment remains cautious amid rising dollar demand from importers.

Domestically, the Reserve Bank of India has withdrawn nearly ₹1 trillion via reverse repo operations to mop up excess liquidity, helping stabilize currency markets. The RBI’s careful liquidity management, combined with robust forex reserves, has given the rupee some buffers—but near‑term volatility is likely as U.S. trade posture, Fed rate estimates, and global appetite for rupee assets evolve.