The Indian rupee remained largely unchanged on Tuesday, trading at ₹88.70 per U.S. dollar around 10:00 a.m. IST, almost flat from its previous close of ₹88.6975. While most Asian currencies fell 0.1%–0.6%, intermittent dollar sales by state-run banks helped the rupee hold above its all-time low of ₹88.80.

Market participants believe these interventions were likely on behalf of the Reserve Bank of India, signaling that the 88.80 level may remain a strong support in the near term.

The currency also reacted cautiously to remarks by U.S. President Donald Trump, who said Washington was nearing a trade deal with India. Analysts remain watchful for concrete progress in negotiations, as India’s benchmark Nifty 50 index slipped 0.2% amid muted investor reaction.

MUFG noted that, as a working base case, U.S. tariffs on Indian goods could decline from 50% to around 25%, still higher than some of India’s competitors.

Global markets also focused on developments in the U.S. government shutdown, with the Senate approving a compromise agreement that now awaits approval from the House of Representatives. The dollar index (DXY) was marginally higher at 99.6.