The Indian rupee fell about 1% in May after gaining in the previous two months, ending at 85.5775 amid choppy trading.
Early losses were driven by India-Pakistan tensions, but the rupee later faced pressure from corporate dollar demand and RBI intervention.
Asian currencies mostly strengthened, with the Chinese yuan up nearly 1%; meanwhile, the dollar was flat amid U.S. trade policy shifts.
Barclays expects the rupee to lag peers as the RBI rebuilds FX reserves; focus now shifts to India’s GDP and U.S. inflation data releases.
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