Rupee Under Fresh Pressure: Powell-Trump Rift Fuels Fed Uncertainty

• The Indian rupee faces renewed pressure due to foreign outflows, hedging, and escalating tensions between U.S. President Donald Trump and Federal Reserve Chair Jerome Powell.
• The 1-month non-deliverable forward indicates the rupee will open in the 90.22-90.28 range against the U.S. dollar.
• Reserve Bank of India's interventions last week failed to sustain a rupee rally, with equity outflows, importer hedging, and broad dollar strength negating the impact.
• A currency trader predicts the rupee could test 90.50 this week, doubting further significant RBI intervention.
• Uncertainty mounts over the Fed's independence as U.S. prosecutors investigate Powell, who accuses the administration of trying to influence policy.

Why It Matters: The Indian rupee is under renewed pressure due to global factors and domestic outflows, with RBI intervention proving insufficient.