The rupee depreciated 16 paise to close at 87.82 (provisional) against the U.S. dollar on Tuesday (August 5, 2025), as risk-off sentiment deepened after U.S. President Donald Trump renewed his menace to increase tariffs on Indian items over New Delhi’s continued purchases of Russian oil.
Forex merchants mentioned the rupee is probably going to slide additional as India-U.S. commerce deal uncertainty continues to dent home market sentiments.
Moreover, weak fairness markets dented buyers’ sentiments additional. However, the home unit pared preliminary losses on supposed intervention by the Reserve Bank of India (RBI).
A gentle U.S. dollar and in a single day decline in crude oil costs additionally cushioned the draw back to some extent, they mentioned.
At the interbank international alternate, the home unit opened at 87.95 against the dollar, and throughout the day, it touched an intra-day excessive of 87.75 against the American foreign money.
At the top of Tuesday’s (August 5, 2025) buying and selling session, the home unit was at 87.82 (provisional), down 16 paise over its earlier close.
On Monday (August 3, 2025), the rupee depreciated 48 paise to close at 87.66 against the U.S. dollar.
In a recent commerce menace against India, President Donald Trump on Monday (August 3, 2025) mentioned he’ll “substantially” increase U.S. tariffs on New Delhi, accusing it of shopping for huge quantities of Russian oil and promoting it for large income.
Last week, the Trump administration slapped a 25% responsibility on all Indian items. The U.S. president additionally introduced a penalty for getting “vast majority” of Russian army gear and crude oil.
“We expect the rupee to continue to slide as India-U.S. trade deal uncertainty continues to dent domestic market sentiments. Weak tone in the domestic equities and FII outflows may further pressurise the rupee,” Anuj Choudhary, Research Analyst, Commodities Research, Mirae Asset Sharekhan, mentioned.
Mr. Choudhary added that “the rupee may also remain weak ahead of the RBI’s monetary policy. Market expects a rate cut by the central bank. However, overall weakness in the U.S. dollar amid rising odds of a rate cut by the Fed in September may support the rupee at lower levels”.
Meanwhile, buyers stay cautious forward of the RBI financial coverage choice this week.
RBI Governor Sanjay Malhotra-headed rate-setting panel on Monday (August 3, 2025) began the three-day deliberations to resolve the following bi-monthly financial coverage.
The six-member Monetary Policy Committee (MPC) is scheduled to announce the following bi-monthly coverage fee on Wednesday (August 6, 2025).
Meanwhile, Brent crude costs fell 0.97% to $68.09 per barrel in futures commerce, after OPEC+ agreed to hike one other massive output enhance in September, including to oversupply issues after U.S. knowledge confirmed lacklustre gasoline demand.
The dollar index, which gauges the dollar’s power against a basket of six currencies, rose 0.18% to 98.68.
In the home fairness market, the 30-share BSE Sensex superior 308.47 factors, or 0.38%, to close at 80,710.25, whereas the Nifty rose 73.20 factors, or 0.30%, to settle at 24,649.55.
Foreign institutional buyers (FIIs) offloaded equities value $2,566.51 crore on a internet foundation on Monday (August 3, 2025), in accordance to alternate knowledge.
