The Indian rupee hovered close to its record low as market participants digested policy shocks from abroad and persistent dollar demand. Reserve Bank intervention provided short-term support, but weak foreign inflows and pressure on IT exporters kept sentiment fragile. Traders say further depreciation would raise import costs and squeeze corporate margins; near-term direction will hinge on central bank operations, foreign institutional flows and clarity on U.S. trade and visa policies.

Regional equity markets recovered earlier weakness as a surge in Chinese technology and semiconductor names reignited investor buying. The rebound offset a modest pullback in U.S. markets after cautious central bank commentary, producing a mixed, sector-driven session. Market participants described flows as rotation into AI-related and semiconductor exposure rather than broad risk appetite; attention remains on upcoming macro releases and central bank signals that will shape the next directional move.