The Indian rupee slipped to around 90.2 per dollar, retreating after a muted performance as ongoing foreign outflows and policy tensions continued to weigh on the currency. Bank of India interventions last week to curb speculative long-dollar positions offered only limited relief, leaving the rupee vulnerable to further depreciation. Domestic debt markets added to pressure, with Indian states announcing plans to borrow INR 5 trillion in Q1 and the federal government issuing over INR 3 trillion, the largest quarterly supply on record, pushing yields higher and widening spreads between state and central government debt. Traders are closely monitoring RBI liquidity operations, including planned bond purchases of INR 500 billion on January 12 and January 22. Separately, market sentiment was further dampened as escalating tensions between US President Donald Trump and Federal Reserve Chair Jerome Powell, which has added to market caution regarding global monetary policy.