New Delhi, July 2 -- The Indian rupee is expected to trade in the range of 85.25-86.25 against the US dollar in the near term, according to a recent report by Bank of Baroda.

The report stated that a trade deal between India and the United States will be positive for the rupee and may help support its value further.

"We expect INR to trade in the range of 85.25-86.25/USD in the near term. A trade deal between India and the US will be positive for the rupee," the report noted.

However, some amount of volatility is expected as the US tariff pause deadline on July 9 approaches.

Despite the potential volatility, the bank believed that the overall weakness in the US dollar would persist due to domestic economic factors in the US. On the do...