Currency watch: Rupee slips 17 paise to 87.75 against US dollar; importer demand and higher crude prices weigh on sentiment
Tired of too many ads? go ad free now
At the interbank foreign exchange market, the domestic currency opened at 87.56 and traded in a narrow range of 87.48 to 87.75 before settling at the day's low. On Friday, the rupee had closed flat at 87.58 after recovering from intra-day losses, PTI reported.
'The rupee opened higher on a weak US dollar index and positive domestic markets but later pared gains due to firmer crude oil prices and FII outflows,' said Anuj Choudhary, Research Analyst, Commodities Research, Mirae Asset Sharekhan.
He added that the local unit may trade with a negative bias amid uncertainty over trade tariff issues between India and the US.
Persistent foreign portfolio outflows could weigh on the rupee, though a weak US dollar may offer support at lower levels, Choudhary said. 'Investors may remain cautious ahead of US inflation data this week. We expect USD-INR spot to trade in the 87.35–88 range,' he noted.
Brent crude futures edged up 0.03% to $66.61 per barrel.
The dollar index, which measures the greenback against a basket of six major currencies, was up 0.10% at 98.28.
Investors are also awaiting India and US CPI inflation readings and developments from the planned August 15 talks between US President Donald Trump and Russian President Vladimir Putin on the Ukraine war. India has reiterated Prime Minister Narendra Modi's position that this is 'not an era of war' and has consistently called for dialogue and diplomacy to end the conflict.
Tired of too many ads? go ad free now
In domestic equities, the Sensex surged 746.29 points to 80,604.08, while the Nifty gained 221.75 points to close at 24,585.05.
On the reserves front, India's forex kitty fell by $9.322 billion to $688.871 billion for the week ended August 1, one of the sharpest weekly declines in recent months, according to RBI data. In the previous week, reserves had risen by $2.703 billion to $698.192 billion.
Foreign institutional investors sold shares worth Rs 1,202.65 crore on Monday, exchange data showed.
Traders also flagged pressure on the rupee from escalating trade tensions. On August 6, the US announced an additional 25% tariff on all Indian imports, doubling the total duty to 50% from August 27.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
India Today
13 minutes ago
- India Today
Trump says he'll 'know exactly' within minutes if Ukraine deal is possible
US President Donald Trump said he expects Russian President Vladimir Putin to arrive at their meeting in Alaska on Friday with concrete proposals to end the war in Ukraine. Speaking to reporters on Monday at the White House, Trump said it would only take him "a couple of minutes" to determine whether a deal is possible."At the end of that meeting, probably the first two minutes, I'll know exactly whether or not a deal can be made," Trump said. He added that if Putin's proposals are serious, he will pass them on to Ukrainian President Volodymyr Zelensky with a recommendation to either make peace or "keep fighting."advertisementTrump described the upcoming meeting as "really a feel-out meeting" and said it could go either way. "It'll be good, but it might be bad," he said. "I may say, lots of luck, keep fighting. Or I may say, we can make a deal."UKRAINE FEARS DEAL WITHOUT ITS CONSENT MAY FAVOR MOSCOW Putin, eager to cement Russia's territorial gains since the February 2022 invasion, is expected to press for a ceasefire on terms Kyiv and its European allies have long resisted. Trump has signalled openness to ideas -- including land swaps -- that could alarm Ukraine, where leaders fear any agreement made without them would tilt toward Moscow's sidestepped repeated questions about whether he would insist on Ukrainian President Volodymyr Zelenskyy's participation. "He's been to a lot of meetings" without stopping the war, Trump said, contrasting the wartime leader's record with Putin's decades in the US president left the door open to involving Kyiv later. "The next meeting will be with Zelenskyy and Putin," he said. "Or Putin and Zelenskyy and me." He promised to call both Zelenskyy and European leaders after the Alaska talks to brief them — but stressed, "I'm not going to make a deal. It's not up to me to make a deal.""President Putin invited me to get involved," Trump said, calling it "very respectful" that the Russian leader would come to US soil. "I'd like to see a ceasefire. I'd like to see the best deal that can be made for both parties."Putin is expected to hold firm on keeping occupied territory and blocking Ukraine's NATO membership. Zelenskyy insists Ukraine will not surrender land. On the front lines, fighting grinds on along a 1,000-kilometre front, with little sign of an end in sight.- EndsWith inputs from Associated Press
India.com
13 minutes ago
- India.com
Has The Fall of The US Dollar Begun? Why India And China's Rise Has Experts Sounding The Alarm
New Delhi: The long-standing dominance of the U.S. dollar is beginning to erode, and emerging economic powers such as India and China are steadily gaining ground, according to American economist Gerald Celente. He warns that the balance of global financial power is shifting, with the BRICS (Brazil, Russia, India, China and South Africa) challenging U.S.-led economic policies and international influence. His remarks come at a time of mounting trade tensions between the United States and BRICS nations. America recently imposed steep tariffs on Indian goods, with a 50% duty being rolled out in two phases, the first 25% already in effect and the remainder set to be implemented from August 27. The Trump administration has justified the measure by citing India's continued purchase of Russian oil. Brazil has also been targeted with similar tariffs, deepening the diplomatic rift. Speaking on a podcast hosted by Cuban-American journalist Rick Sanchez, Celente explained why India is unwilling to bow to U.S. pressure. He said only around 2% of India's GDP is tied to trade with Washington, making New Delhi less vulnerable to economic retaliation. According to him, India is increasingly becoming a self-reliant nation, which produces a large share of its goods domestically, a stage the United States itself once experienced before becoming heavily dependent on global supply chains. The economist also reflected on China's transformation from a nation once lacking advanced industry to a leader in manufacturing and technology, particularly in sectors such as electric vehicles. Western nations, he said, initially helped establish China's industrial base but now face competition from it. Much like India, China is moving towards greater self-sufficiency and reducing its reliance on foreign imports. Celente was critical of what he sees as America's tendency to dictate economic policy to other sovereign nations, arguing that Washington has no legitimate authority to influence the internal economic decisions of independent states. He believes this overreach is contributing to a growing resentment toward U.S. dominance across much of the world. With BRICS now representing over 40% of the global population, the scale of this shift is significant. India and China each have around 1.4 billion citizens, compared to the United States' population of 347 million. This demographic advantage, coupled with increasing trade within the bloc, gives BRICS members leverage in challenging the U.S.-led financial system. Celente predicts a bleak future for the U.S. dollar, describing the current trajectory as 'the death of the dollar'. He attributes part of the decline to U.S. monetary policy decisions, including the 2018 interest rate cuts under President Donald Trump. In his view, the American economy is on a downward slope, and the weakening of the dollar is already well underway. The BRICS nations have been actively working to reduce dependence on the dollar in international trade, seeking to bypass Western-dominated financial institutions such as the International Monetary Fund and the World Bank. If this trend continues, Celente warns, the dollar's role as the world's primary reserve currency could diminish far sooner than Washington expects.
News18
39 minutes ago
- News18
Trump Signs Executive Order Extending Tariff Truce Deadline With China By 90 Days
The executive order was issued a day after President Trump urged China to significantly increase its purchases of US soybeans. US President Donald Trump has signed an executive order on Monday, extending the tariff truce deadline with China by 90 days, Reuters reported, citing a White House official. The order follows high-level talks between top officials from both countries, who met in Stockholm in July to explore the possibility of shifting the deadline to reach a negotiated agreement on tariffs. A White House official confirmed the latest decision, which came just hours before US tariffs on Chinese goods were due to revert to triple-digit rates. The previously agreed tariff truce between Beijing and Washington was scheduled to expire at 00:01 ET on Tuesday. The executive order, signed on Monday, was issued a day after President Trump urged China to significantly increase its purchases of US soybeans by as much as fourfold. At the same time, Washington has been pressuring Beijing to halt imports of Russian oil, with Trump warning of potential secondary tariffs on Chinese entities found violating the directive. When asked by reporters during a press conference on Monday whether he intended to extend the deadline, Trump responded, 'We'll see what happens. They've been dealing quite nicely. The relationship is very good with President Xi (Jinping) and myself." Without the order being passed, US tariffs on Chinese goods would have surged by 145%, while Chinese tariffs on American goods were set to rise to 125%. At present, imports from China into the US are subject to a 30% tariff, which includes a 10% base rate and an additional 20% imposed in relation to fentanyl-related policy measures. These rates were implemented by Washington earlier this year, between February and March. In response, China currently levies a 10% tariff on goods imported from the US. Both nations have made repeated efforts in recent months to reach a consensus on tariff policy, following the imposition of reciprocal triple-digit tariffs. In May, during a meeting in Geneva, Switzerland, the two sides agreed on a temporary truce, initiating a 90-day period for continued negotiations. They met again in Stockholm, Sweden, in late July, although no official extension was announced at the time. However, both parties described the talks as constructive, signalling the possibility of a truce extension. view comments First Published: Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
