The rupee stumbled back into its downtrend on Monday, trading at 86.3675 against the dollar by late morning, down from Friday’s 86.2050. Last week’s glimmer of strength – powered by a 0.5% recovery—has faded, as equity outflows and corporate hedging weigh heavy. The optimism from a tariff-free weekend is wearing thin. Donald Trump’s pause on tariff announcements gave emerging market currencies a breather, but that reprieve feels fragile. The rupee’s recent rally had leaned on a softer dollar, itself tied to the Fed’s neutral stance and Trump’s temporary restraint. Adding to the rupee’s woes, Indian equities continue to falter. Foreign investors remain on the sidelines, yanking $7.5 billion out of Indian stocks this month alone. Traders are wary of fleeting rallies as corporate hedging and persistent equity outflows keep the pressure on. The Fed looms large this week, though no policy shifts are expected. The real drama lies in Fed Chair Jerome Powell’s press conference. Markets will be hanging on every word, looking for clues on whether sliding inflation could pave the way for rate cuts – or whether tariff uncertainty might throw a wrench in future plans.