The rupee depreciated 52 paise to close at 87.70 (provisional) against the U.S. dollar on Monday (August 4, 2025), as sustained overseas fund outflows and commerce tariff uncertainties dented buyers’ sentiment.
Forex merchants mentioned U.S. President Donald Trump’s tariffs triggered contemporary considerations over a a lot wider disruption within the world commerce panorama.
The home foreign money declined in the course of the day on demand for {dollars} from Oil Marketing Companies (OMCs).
At the interbank overseas change, the home unit opened at 87.21 against the buck, touching an intra-day low of 87.70 against the American foreign money.
At the tip of Monday’s buying and selling session, the home unit was at 87.70 (provisional), down by 52 paise over its earlier close.
On Friday, the rupee recovered sharply and ended 47 paise greater at 87.18 against the U.S. dollar.
“We expect the rupee to remain weak amid uncertainty over India-U.S. trade deal and FII outflows. However, weakness in the U.S. dollar amid chatter over rate cut expectations in the US amid weak economic data may support the rupee at lower levels,” mentioned Anuj Choudhary – (*52*) Analyst, commodities and currencies, Mirae Asset Sharekhan.
“Traders may take cues from factory orders data from the US. Investors may remain cautious ahead of the RBI monetary policy decision this week,” Choudhary mentioned, including that USD-INR spot value is anticipated to commerce in a variety of 87.40 to 88.
The RBI Governor Sanjay Malhotra-headed rate-setting panel on Monday began the three-day deliberations to resolve the subsequent bi-monthly financial coverage.
The six-member Monetary Policy Committee (MPC) is scheduled to announce the subsequent bi-monthly coverage price on Wednesday (August 6).
Meanwhile, Brent crude costs fell 1.06% to $68.93 per barrel in futures commerce, as OPEC+ agreed for a manufacturing hike in September this yr, whereas considerations over a cooling U.S. financial system and commerce tariffs additionally weighed.
The dollar index, which gauges the buck’s energy against a basket of six currencies, fell by 0.37% to 98.77, “The U.S. dollar fell on Friday amid disappointing economic data from the U.S. According to the non-farm payrolls report, the U.S. added 74,000 jobs in July 2025 vs forecast of 106,000 jobs. The June data was also revised lower unexpectedly to 14,000 vs initial projection of 147,000 jobs,” Choudhary mentioned.
In the home fairness market, the 30-share BSE Sensex superior 418.81 factors, or 0.52%, to close at 81,018.72, whereas the Nifty rose 157.40 factors, or 0.64%, to settle at 24,722.75.
Foreign institutional buyers (FIIs) offloaded equities value ₹3,366.40 crore on a web foundation on Friday, in accordance to change information.
