The Indian rupee opened lower in early trade against the US dollar due to the central bank’s decision to withdraw INR 2,000 ($27) notes from circulation, prompting traders to assess the impact on liquidity. The RBI gave the public until 30 September to either deposit the notes or exchange them at banks. The removal of the highest denomination note comes as doubts about debt-ceiling negotiations and a possible US default weighed on market sentiment. However, the dollar was marginally weaker following slightly less hawkish commentary on rates by Jerome Powell, potentially offering support.
