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WEEKAHEAD Tariff risks to weigh on Indian rupee, bonds to track US inflation data - REUTERS
By Dharamraj Dhutia and Jaspreet Kalra
MUMBAI, Feb 10 (Reuters) - The rupee is expected to stay under pressure this week as the looming risk of trade tariffs support the dollar with remarks from the Federal Reserve chair and U.S inflation data in focus for the local currency and government bonds.
The rupee closed at 87.4250 on Friday, down nearly 1% for the week, its worst weekly decline since December 2022.
Concerns around a global trade war, foreign portfolio outflows and expectations of a domestic interest rate cut pushed the rupee to its lifetime low of 87.5825 last week.
The Reserve Bank of India cut rates for the first time in nearly five years on Friday.
Meanwhile, U.S. President Donald Trump said on Friday that he plans to announce reciprocal tariffs on many countries early this week but did not specify which countries. Indian Prime Minister Narendra Modi will visit the U.S. on Wednesday for talks with President Trump.
Trump's comments helped boost the dollar alongside data on Friday that showed the U.S. unemployment rate declined to 4%, reinforcing the view that the Fed does not need to rush to cut interest rates.
