The Indian rupee hovered around 85.7 per USD, near its lowest level in three weeks, as uncertainty surrounding US trade policy weighed on sentiment. India remains one of the few major US trade partners yet to receive a formal tariff notification. Indian negotiators are expected to return to Washington soon for further discussions, focusing on contentious issues including auto components, steel, and agricultural products. Adding to the rupee’s pressure were strong dollar demand and signs of capital outflows from Indian equities. Meanwhile, inflationary pressures continued to ease. Consumer price inflation dropped to a six-year low of 2.1% in June. In response to softening price pressures, the Reserve Bank of India delivered a surprise 50bps cut to its key repo rate in May. Economists are divided on whether the RBI will lower rates again at its August meeting, though a majority anticipate at least one more 25bps cut by year-end.