The Indian rupee traded around 85.3 per US dollar, supported by broad dollar weakness as escalating trade uncertainties and the threat of additional tariffs weighed on US assets. Considering the May month however, the rupee depreciated nearly 1% against the greenback, pressured by ongoing tariff disputes, persistent border tensions, and rising expectations of monetary easing from the Reserve Bank of India (RBI). Looking ahead, markets are focused on the RBI’s monetary policy decision due this week, with the central bank widely expected to cut interest rates by 25 basis points, marking its third consecutive rate cut. Meanwhile, the RBI, which has already pledged to sell billions of dollars through derivatives at various future dates, is also expected to step up purchases of US dollars in the spot market to prevent a depletion of its foreign reserves.