The Indian rupee depreciated marginally against the US dollar in July, reflecting ongoing global trade uncertainties and FPI outflows, RBI said in its latest bulletin. Despite such depreciation, the rupee remained one of the least volatile currencies among major EMDEs during the month. In August, the Indian rupee registered some gains against the US dollar following the announcement of S&P’s upgrade of India’s sovereign rating. In real effective terms, the Indian rupee appreciated in July. India’s inflation (on a m-o-m basis) was higher than the weighted average inflation of its major trading partners, outweighing depreciation of the Indian rupee in nominal effective terms, the central bank noted.