0903 GMT - USD/INR could hit 89 amid persistent of U.S. trade tensions, the Mizuho Macro Research team writes in a note. Tariff risks have driven the rupee to tumble since end-July despite softer oil prices and positive GST reforms, they write. While tensions could ease, India is keeping strategic flexibility on Russian oil and prioritizing protection of its farm sector in U.S. trade talks rather than yielding to all U.S. demands, they say. Bottoming inflation and deeper rate cuts by the central bank could also weigh on the rupee's attractiveness, it says, adding the USD/INR may see some alleviation towards the 85 level in 2026. The Indian rupee hit an all-time low Friday, with USD/INR at 88.2960, LSEG data show. (kimberley.kao@wsj.com)
(END) Dow Jones Newswires
August 29, 2025 05:03 ET (09:03 GMT)
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