The Indian rupee edged lower to around 90.5 per dollar, pausing gains from the previous session amid corporate dollar buying and in anticipation of the RBI swap. Corporates stepped up dollar purchases to hedge import costs and other overseas obligations. At the same time, investors monitored the Reserve Bank of India’s $10 billion 3-year dollar-rupee swap scheduled later in the day, which could influence liquidity and trading activity. Meanwhile, the currency continues to receive some support from the US-India trade deal, which reduces US tariffs on Indian goods from 50% to 18% while retaining protections for certain agricultural imports. Key details, including timelines, product coverage, and enforceability, remain unconfirmed. Analysts note the deal supports exports in textiles, apparel, and industrial goods, though India’s trade deficit may limit immediate rupee gains. The RBI is expected to maintain its policy repo rate at 5.25% after 125 bps of cuts in 2025.