The Indian rupee edged down to around 95.3 per dollar, retreating from last week’s four-week highs as a broad selloff in Asian equities and a spike in global crude prices halted its upward momentum. Broader Asian currencies similarly weakened as optimism faded surrounding a potential US-Iran peace deal. This pullback followed a Friday rally driven by aggressive Reserve Bank of India interventions to boost dollar inflows. While economists project these measures will attract $30–$50 billion by March 2027 and limit immediate downside risks, external pressures have quickly overshadowed these gains. Sentiment was further strained by rising US Treasury yields, as stronger-than-expected May jobs data fueled expectations of a Federal Reserve interest rate hike later this year. Meanwhile, investors digested data showing India’s real GDP grew 7.8% year-on-year in the March quarter of 2026. While down slightly from the revised 8% prior, the performance comfortably beat market forecasts of 7.2%.
