Rupee hits highest level in August against US dollar on fading tariff risks, GST boost
The rupee rose as much as 87.2050 per US dollar on Tuesday, compared with 87.35 in the previous session. It was last at 87.2250.
The currency is being supported by the Trump-Putin meeting and subsequent talks between the US and Ukrainian presidents, raising hopes of a peace deal. This, Nomura said in a note, 'appears to reduce the likelihood of additional tariffs/sanctions on India in relation to the purchase of Russia oil'.
An escalation in US tariffs on India could have driven the rupee/dollar to break past key levels on the upside.
Prime Minister Narendra Modi's planned GST rationalisation is expected to support consumption and has also lifted sentiment in the rupee. Economists said the measures could provide a near-term boost to growth momentum and help offset the drag from weak external conditions.
The rupee's Asian peers were mostly lower on Tuesday, pegged back by a rise in US yields. The 10-year US yield hit the highest in two weeks on Monday.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Hindu
29 minutes ago
- The Hindu
A.P. exporters seek Centre's intervention as U.S. tariffs hit seafood industry hard
The Seafood Exporters Association of India (SEAI) has appealed to the Central government to extend urgent relief measures to protect the Indian seafood export industry, saying that it is reeling under the impact of newly imposed tariffs by the United States. A delegation led by Union Minister of State for Steel and Heavy Industries Bhupathiraju Srinivasa Varma, along with SEAI president Pawan Kumar and others, met Union Finance Minister Nirmala Sitharaman in her Parliament office on Tuesday and submitted a memorandum. The delegation highlighted that with the recent 25% tariff imposed by the U.S.A., along with countervailing duty (CVD) and anti-dumping duties, Indian exporters are now burdened with nearly 35% in levies, drastically reducing the competitiveness. They said that exports to the U.S.A.—which account for nearly 25% of India's $8 billion seafood exports in 2023–24 fiscal year—are expected to decline sharply, severely impacting the livelihoods of 2.8 crore fishermen, aquaculture farmers, processing workers, packaging staff, and transporters who depend on the sector. To help overcome the crisis, the SEAI proposed a set of relief measures, including soft loans up to 30% of working capital at concessional interest rates (below 5%); extension of export credit facilities for 240 days for all seafood exporters; financial assistance at 8% of the FOB value for exports to the U.S.A.; additional support at 2% of the FOB value for exports to other countries; special financial packages for small and medium aqua farmers to prevent distress. 'If these measures are implemented, exporters will be able to sustain themselves in global markets and the industry, along with the 28 million people dependent on it, can be safeguarded,' said Mr. Pawan Kumar. Ms. Nirmala Sitharaman assured the delegation that the issues would be examined and appropriate measures would be considered. CEO Dr. Raghavan, National Committee member Irrinki Ganga Ram, Poojitha, and MPs Sana Satish Babu and Beeda Mastan Rao were also present.
Indian Express
29 minutes ago
- Indian Express
Jaishankar lands in Moscow, to meet Lavrov, First Dy PM Manturov
EXTERNAL AFFAIRS Minister S Jaishankar is set to meet Russian Foreign Minister Sergey Lavrov and First Deputy PM Denis Manturov in Moscow, as he landed in Moscow on Tuesday. The visit comes days after Russian President Vladimir Putin spoke to Prime Minister Narendra Modi and briefed him about his meeting with US President Donald Trump in Alaska on the Russia-Ukraine war. The phone call between Modi and Putin – their second conversation in 10 days – was significant in the backdrop of the tension in ties with the US after Trump doubled the tariff on India over its purchase of Russian oil. On August 8, Modi and Putin held a phone conversation during which they discussed 'the latest developments on Ukraine' and reaffirmed their 'commitment to further deepen the India-Russia Special and Privileged Strategic Partnership'. The Ministry of External Affairs said in a statement, 'At the invitation of First Deputy Prime Minister of the Russian Federation Denis Manturov, the External Affairs Minister, S Jaishankar, will undertake an official visit to Russia on 19-21 August 2025 to co-chair the 26th Session of the India-Russia Inter-Governmental Commission on Trade, Economic, Scientific, Technological and Cultural Cooperation (IRIGC-TEC) scheduled for 20 August 2025.' He will also address the India-Russia Business Forum meeting in Moscow. During the visit, the External Affairs Minister will meet Lavrov and 'review the bilateral agenda and share perspective on regional and global issues'. It said that the visit aims to further 'strengthen the longstanding and time-tested India-Russia Special and Privileged Strategic Partnership'. The timing of the visit is important at a time when the India-Russia ties have been the focus of the Trump administration. The US administration, led by US President Donald Trump, has imposed 25 per cent tariffs as penalty on India for buying Russian oil. Earlier this month, National Security Advisor Ajit Doval also travelled to Moscow and met Putin. Senior American officials, including Peter Navarro, who is White House advisor on trade, and Cabinet ministers, including Treasury Secretary Scott Bessent and Secretary of State Marco Rubio, have attacked India for buying Russian oil. While India is hoping for a reprieve from the Trump administration after the Alaska summit, its outreach to Moscow needs to be seen in the context of its multi-alignment policy and its legacy defence partnership. New Delhi views Moscow as a robust and reliable partner, in the face of uncertainties faced from the US and assertiveness from China. And that has been the foundation of Delhi's partnership with Russia over the decades. The two sides have maintained regular contact, and now Prime Minister Modi is likely to meet President Putin on the sidelines of the SCO leaders' summit in Tianjin in China from August 31 to September 1. Sources said there are also discussions for a visit by Russian President Putin to India later this year.
Economic Times
29 minutes ago
- Economic Times
CEOs navigating a world shaped by shifting trade & AI
Synopsis Indian CEOs are navigating global economic shifts and technological advancements. India's young population drives consumption, fueling growth. "Make in India" gains traction as supply chains diversify. Free Trade Agreements improve market access. AI is transforming businesses, supported by a thriving startup ecosystem and government initiatives. CEOs must adapt to these changes to succeed in the evolving landscape. The rules of business are being rewritten. Trade shifts and technological breakthroughs have not just disrupted markets, they've altered the architecture of the global economy. For all the challenges in front of them, this is a great time for CEOs to make a difference. Their choices really CEOs are facing these twin forces head-on. They are navigating global turbulence at the very moment their own economy continues to experience extraordinary expansion. A young, upwardly mobile population is fuelling unprecedented consumption. India's Gen Z population is 377 million strong-more than the entire population of the US-and they are already driving $860 billion of spending. Indian companies are pushing into new frontiers, from becoming suppliers of choice to a global customer base to reinventing IT services through AI-powered value of the most visible shifts is playing out in global supply chains. For more than a decade, "Make in India" was a national aspiration, but the sector's share of GDP remained at 15-17%. That is changing. The pandemic exposed the fragility of lean supply networks. Geopolitical tensions have accelerated the shift toward strategic alliances and diversified sourcing. In this reshaped landscape, India is emerging as a strong contender as companies look to find new and expanded partners for their supply shifts are presenting both challenges and opportunities. While the US has announced significant tariffs on over half of India's exports to the nation, thus presenting a challenge to the impacted sectors; its overall impact to Indian economy is quite limited, given exports to US account to only ~2% of India's GDP. On the other hand, India has been improving access to other markets through Free Trade Agreements - such as with Australia, the UK, EFTA, and the UAE. Negotiations underway with the EU could unlock an even larger prize. As companies recalibrate supply chains toward "friend-shoring" and politically aligned corridors, India's position as a reliable, strategic partner becomes more valuable. In addition, as India continues to push towards greater self-reliance, there are significant opportunities for companies in strategic sectors like electronics & semiconductors and green the same time, AI is redefining the fundamentals of business. For most CEOs, it is no longer simply a play for efficiency - it is a platform for reinventing their companies. From automating complex tasks such as coding and logistics planning to transforming customer engagement with AI agents and AI-powered service centres, the technology is redrawing workflows and job boundaries. India's AI ecosystem is evolving quickly. It is home to nearly 3,000 AI startups. The $1.2 billion India AI Mission is accelerating progress as well as funding sovereign large language models, subsidised compute infra, and national skilling programmes. Over 2 million STEM graduates each year give India capabilities that are hard to CEOs, the combination of shifting trade patterns and AI disruption demands a fundamentally different approach to leadership. Leading companies are embedding geopolitical intelligence and adaptiveness into their core strategy, redesigning supply chains with resilience as the primary objective. Leveraging AI, they reshape functions, invent new business models, and pursue for CEOs are rising as the operating environment becomes less predictable. This era calls for sharper judgment, faster pivots, and bolder bets. Execution, not intention, will determine winners and losers. Trade shifts and acceleration of AI are not passing storms, they are the prevailing winds of the next decade. Leaders who can harness both will not just navigate disruption, they will define what comes next. (Schweizer is CEO and Jain is India Head of BCG. Schweizer will be speaking at The Economic Times World Leaders Forum in New Delhi) (Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of
