The US Dollar Indian Rupee (USD/INR) exchange rate is trading 0.5% higher at 73.54 after plunging over 2% last week.

The Rupee is out of favour amid renewed border tensions with China over the disputed border in Ladakh. Investors are also looking ahead to the release of Indian GDP for the April – June quarter. Analysts are expecting a -20% contraction, the worst on record.

US Dollar is attempting to advance versus its major peers, although it is still looking at its worst August performance in 5 years. A shift in Federal policy to keep interest rates lower for longer could cap US Dollar gains.