The Indian rupee experienced its third consecutive weekly decline when it finished at 86.5150 per U.S. dollar because investors remained cautious about upcoming Fed and BOJ meetings and the approaching U.S.-China tariff deadline. The currency reached its lowest point since June 29th while facing downward pressure from both equity withdrawal and trade-related uncertainties. The Indian stock market indices dropped approximately 0.9% because of worldwide market instability and negative earnings reports. The dollar index rose to 97.7 which intensified pressure on currencies in the region. Market participants expect the Federal Reserve to maintain interest rates but they currently predict a possible rate reduction in September. ANZ predicts that interest rate easing will start in the fall with two 25bp rate reductions planned for the end of the year.
