By Dharamraj Dhutia and Nimesh Vora

MUMBAI (Reuters) -The Indian rupee’s trajectory will depend on developments around U.S. tariffs and the Reserve Bank of India’s response if the currency comes under renewed pressure, while government bonds will track inflation data from both India and the United States.

The rupee weakened by 0.1% last week to 87.66, following a 1% drop the week before, after U.S. President Donald Trump imposed additional tariffs on Indian goods, placing India among the countries subject to the highest U.S. import duties.

High tariffs increase downside risks to India’s economic growth, Morgan Stanley said in a note last week. The brokerage said it is monitoring developments in trade negotiations and high-frequency growth indicators.

The sixth round of negotiations bet

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