Rupee Steadies on Tariff Concerns, CPI Data Eyed

2026-01-09 02:46 By Joshua Ferrer 1 min. read

The Indian rupee steadied around 89.9 per USD, trading in a tight range as investors await upcoming inflation data for cues on policy outlook, while intensifying tariff concerns and equity outflows continued to weigh on the currency.

US President Donald Trump has greenlit a bipartisan sanctions bill that would allow tariffs of up to 500% on countries importing Russian oil, placing India, China, and Brazil in Washington’s crosshairs.

Republican Senator Graham noted the sanctions bill could reach a congressional vote as early as next week, keeping market uncertainty elevated.

The combined impact of the proposed tariffs, persistent foreign fund outflows, and RBI short forward positions kept pressure on the rupee, despite intermittent dollar sales by the central bank.

Meanwhile, December inflation data, due next week, are expected to rise for a second consecutive month to an annual rate of 1.5%, still marking eleven straight months below the Reserve Bank's 4% medium-term target.



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