Indian rupee falls to two-week low on fed hawkish tone
The Indian rupee weakened to a two-week low, closing at 88.6950 per U.S. dollar (down 0.6%) after the Federal Reserve signaled that October’s rate cut may be the last in 2025. This hawkish stance pushed the U.S. dollar and Treasury yields higher, prompting foreign outflows from Indian markets.
Traders said the Reserve Bank of India intervened mildly via state-run banks to limit losses, but selling pressure intensified once key stop-loss levels around 88.40–88.50 were triggered, News.Az reports, citing Reuters.
Other Asian currencies also slipped 0.1%–0.5% after Fed Chair Jerome Powell’s comments. However, markets still see a 68% probability of a 25-bps U.S. rate cut in December, according to CME's FedWatch tool.
Meanwhile, U.S. President Donald Trump announced a reduction in tariffs on China to 47% from 57% after talks with China’s Xi Jinping in South Korea.
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