USD/INR climbs amid worries about Trump’s tariff plans

• The Indian Rupee weakens in Monday’s early European session. 
• US Dollar demand, sustained portfolio outflows, and rising global uncertainty continue to undermine the INR. 
• RBI intervention might cap the downside for the local currency. 

The Indian Rupee (INR) declines on Monday, pressured by increased US Dollar (USD) demand, possibly linked to the non-deliverable forwards market. Additionally, sustained foreign portfolio investors (FPI) outflows, the concern about an economic slowdown in India, and the uncertainty of US President Donald Trump’s tariff policies contribute to the INR’s downside. 

However, USD sales by state-run banks, though most likely on behalf of the Reserve Bank of India (RBI), might help limit the local currency’s losses. In the absence of the top-tier economic data releases from the US and India on Monday, the USD/INR pair will be influenced by the USD.