Can the India-US trade deal alone arrest rupee’s downfall?

Synopsis In the last 10 days following the US trade deal announcement, the rupee has climbed 1.75% against the dollar. But ultimately it is the foreign fund flows that will determine the Indian currency’s fate in the medium to long term. For the better part of 2025, the Indian rupee was the emerging market’s curious outlier. While peers like the Mexican peso and Brazilian real rode the wave of a softening US dollar, the Indian currency remained tethered to the floor, sliding a whopping 6% as high capital outflows and tepid FDI numbers created a perfect storm. Now with the…