The Indian rupee edged higher on Wednesday, helped by the central bank keeping its key rate steady, though impending higher tariffs on shipments to the United States are likely to keep the currency under pressure.

RBI on Wednesday kept its policy interest rate unchanged, as policymakers weighed the risks posed by changing global trade policies and the uncertainties surrounding the potential for higher tariffs by the US President Donald Trump's administration.

As noted by The Economic Times, US President Donald Trump’s 25% tax on Indian exports has caused a great deal of uncertainty in India’s macroeconomic and trade environment. The abrupt change might hurt company profitability and erode investor sentiments across multiple sectors,