Rupee may be allowed to weaken further as RBI cushions the blow of 50% US tariffs

S&P’s overdue sovereign upgrade and GST rationalization should boost India’s outlook, but markets remain muted as looming US tariffs weigh heavy. With India facing the steepest 50% rate, RBI may allow rupee depreciation to cushion the blow. Benign oil and food inflation provide space for calibrated currency adjustment.