On July 22, the Indian rupee strengthened slightly, trading around ₹86.2650 per U.S. dollar. The move was supported by a drop in U.S. Treasury yields—with the 10-year yield dipping to about 4.35%—alongside lower oil prices and a weakening U.S. dollar. Meanwhile, tougher forward premiums and tighter liquidity may drive volatility, as India’s equity inflows remain muted with nearly $9.5 billion withdrawn by foreign investors in 2025.
Despite these short-term gains, analysts caution that the rupee remains vulnerable to further depreciation if global sentiment shifts, or if India fails to secure a U.S. trade deal by the August 1 tariff deadline.
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