MUMBAI, Sept 3 (Reuters) – The Indian rupee is projected to start stronger on Wednesday, maintaining resilience despite broader weakness across Asian currencies and cautious global investor sentiment. Market observers suggest that recent movements indicate a reduction in immediate downward pressure on the currency.\n\nThe 1-month non-deliverable forward contract suggests the rupee may open between 88.04 and 88.08 against the U.S. dollar, improving from the previous close of 88.1550.\n\nSign up here.\n\nOn Tuesday, the rupee experienced volatile trading, reaching an intra-day peak at 87.85 before retreating above the 88.00 level. Analysts noted that briefly surpassing 87.95—a significant technical resistance—reflected easing near-term depreciation concerns.\n\n”Volatility is likely to persist, but the short-term outlook has become more neutral compared to recent weeks,” commented a foreign exchange trader at a major private bank.\n\nTuesday’s rise to 87.85 was supported by isolated inflows from a foreign banking institution and a modestly positive tone surrounding U.S.-India trade discussions. The trader highlighted remarks by India’s commerce minister, who expressed confidence that a bilateral trade agreement could be concluded by November, despite earlier obstacles.\n\nThese comments followed statements by former U.S. President Donald Trump indicating that India had proposed reducing its import duties “to nothing,” which contributed to improved market sentiment.\n\nThe dollar index advanced 0.66% on Tuesday and maintained gains in early Asian trading on Wednesday. Most regional currencies declined versus the greenback, as global equities fell and long-term European bond yields climbed to multi-year peaks, reflecting growing unease over government debt levels in developed economies.\n— news from Reuters\n\n— News Original —\nRupee likely to get a breather despite challenging Asia backdrop\n\nMUMBAI, Sept 3 (Reuters) – The Indian rupee is expected to open higher on Wednesday, shrugging off weakness in Asian peers and soft risk sentiment, with market participants noting that the near-term depreciating bias has moderated to an extent. \n\nThe 1-month non-deliverable forward indicated the rupee will open in the 88.04 to 88.08 range versus the U.S. dollar, compared with 88.1550 in the previous session. \n\nSign up here. \n\nThe rupee on Tuesday saw choppy price action, rising to an intraday high of 87.85 before slipping back past the 88 mark. Traders said the brief climb past 87.95, a key resistance level, signalled that near-term pressure on the currency had tempered. \n\n”We will still see whippy price action. However, the bias near term is more balanced now than what it was before,” a trader at a private sector bank said. \n\nThe move to 87.85 on Tuesday was helped by one-off foreign bank flows and the “mildest of optimism” on U.S.-India trade, the trader said. \n\nThat optimism stemmed from India’s commerce minister saying he expects a U.S.-India trade pact to be finalised by November despite recent setbacks, the trader pointed out. \n\nThe remarks coincided with U.S. President Donald Trump’s comments that India had offered to cut its tariffs “to nothing.” \n\nDOLLAR CLIMBS, EQUITIES SLIDE \n\nThe dollar index rallied 0.66% on Tuesday and inched higher in Asia on Wednesday. Asian currencies weakened against the dollar. \n\nThe dollar ‘s strength came amid a drop in U.S. and European equities and as long-dated European bond yields hit multi-year highs, with investors increasingly concerned about the fiscal situation.