The Indian rupee held around 87.7 per dollar on Thursday, sliding toward an all-time low hit in February after US President Trump said he would impose a 25% tariff on Indian goods, starting August 1. He also warned of higher penalties on certain industries due to India's ongoing trade with Russian oil firms. However, Trump acknowledged that the US is still negotiating with India, while New Delhi appeared unfazed, holding firm on its trade stance. Analysts say India is negotiating from a position of strength, backed by ongoing deals with other partners and limited reliance on US exports. Protecting its agricultural sector remains a key priority, as seen in its UK deal which avoided tariff concessions. Adding pressure, inflation fell to a six-year low of 2.1%, reinforcing expectations of further RBI rate cuts. The central bank is also expected to step in to defend its currency as the rupee approaches all-time lows.