The Indian Rupee is expected to react to US tariffs.

On April 2, Jin10 reported that despite the Indian rupee’s performance last month being better than other regional currencies and achieving the largest monthly rise in six years, it may face obstacles this week. The White House will announce reciprocal tariffs on April 2. Kotak Institutional Equities stated in a report that the rupee benefited from the recent weakness of the dollar and the two-way fluctuation allowed by the Reserve Bank of India, but “the main risk to India’s foreign trade still comes from the uncertainty of U.S. trade/tariff policy.” The report stated: “We expect the exchange rate of the dollar to the Indian rupee in fiscal year 2026 to be between 85-89. Once the tariffs are announced, these forecasts will be reassessed.” Traders will also closely monitor how the Reserve Bank of India responds to the forex market’s reaction. A trader at a bank in Mumbai said that the Reserve Bank of India “may allow the (dollar to Indian rupee) to rise significantly, as it has already fallen quite a bit in March,” to prevent any negative surprises.