The Indian rupee traded around 87.3 per dollar, holding close to a two-week high as it inched further off levels that had neared record lows. This move came after Prime Minister Narendra Modi unveiled sweeping tax cuts, with a proposed two-rate structure of 5% and 18% aimed at boosting consumption and attracting foreign inflows, which had weakened amid concern over US tariffs. Risk appetite was also lifted by faint hopes of progress on a Russia–Ukraine deal after US President Trump met with Russian leader Putin. For India, however, the geopolitical backdrop remains crucial, limiting the rupee’s upside. Washington has maintained plans for an additional 25% tariff on Indian goods tied to its oil trade with Russia, scheduled for August 27, while also scrapping a planned trade delegation to New Delhi. Meanwhile, the Reserve Bank of India advanced its push for de-dollarization, clearing rules for faster rupee–rouble settlements via vostro accounts to strengthen bilateral trade with Russia.