Rupee falls 22 paise to settle at 86.02 against U.S. dollar
Foreign fund outflows and delay in any breakthrough in the India-U.S. trade deal further pressured the local unit, according to forex traders.
At the interbank foreign exchange, the local unit opened at 85.96 and traded in a narrow range of 85.92-86.05 before settling at 86.02 (provisional), down 22 paise from its previous close.
The rupee depreciated 10 paise to close at 85.80 against the U.S. dollar on Friday.
"The Indian rupee again fell as India-U.S. trade deal was yet to be seen while U.S. President Donald Trump applied tariffs on the EU and Mexico, two of its biggest trading partners. Dollar index rose and kept the rupee lower for the entire day while Asian currencies were slightly weaker," Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.
The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.03% to 97.82.
Brent crude, the global oil benchmark, rose 1.56% to $71.46 per barrel in futures trade.
"The Reserve Bank of India [RBI] was present to protect the rupee while FPIs who were sellers of equity on Friday were dollar buyers, keeping rupee well bid for the whole day without any major correction. We expect the rupee to move between 85.75 and 86.25 on Tuesday as we await for U.S. CPI data," he said.
An Indian Commerce Ministry team reached Washington for another round of talks on the proposed bilateral trade agreement (BTA), according to an official. The four-day talks will start on Monday and conclude on Thursday.
On the domestic equity market front, the Sensex declined 247.01 points to settle at 82,253.46, while the Nifty dropped 67.55 points to 25,082.30.
Wholesale price inflation (WPI) turned negative after a gap of 19 months, declining 0.13% in June as deflation widened in food articles and fuel, along with softening in manufactured product costs, government data showed on Monday.
Foreign institutional investors (FIIs) sold equities worth ₹5,104.22 crore on a net basis on Friday, according to exchange data.
Further, the latest RBI data released on Friday showed India's forex reserves dropped $3.049 billion to $699.736 billion in the week ended July 4.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
19 minutes ago
- Economic Times
India inches closer to historic US trade deal, can Modi dodge Trump's 26% tariff threat?
Credit where credit is due. Indian trade negotiators have persevered and survived in a tough environment of tariff threats from Donald Trump and rapid-fire letters spitting out of the White strategy: stay calm and carry on. Bring a good ground game, prevent oversimplification of issues, and insist on fairness. An interim India-US trade deal appears tantalisingly close, which, when announced, should remove the sword of 26% tariffs hanging over India. It will be a subset of the 'first tranche' of a BTA that both agreed to complete by fall. Rajesh Agarwal, India's chief negotiator, is here to give the finishing touches but not to make an announcement. That right belongs to Trump. 'Many of us were expecting an announcement two weeks ago. It's impossible to assess what the president's going to do, what his calculus is,' Mark Linscott, a former US trade official, told me. Could the timing be related to trade talks with Pakistan and a desire to make a joint announcement? 'It would not be productive. The India agreement is historic,' said extended the July 9 deadline to August 1, possibly for two reasons - first, negotiations with some countries, including India, were at an advanced stage, and second, he needed to show results. A 'win' in a sea of threats would affirm that his mad strategy is with India have been substantive, with a focus on the long- term trade trajectory. Flexibility is the name of the game. If you are starting with a $45 bn trade surplus, some front-loading of benefits to the US can be digested. The main objective is to avoid the 26% tariffs Trump threatened and protect Indian being finalised would be an interim agreement, which will lead to more detailed discussions on a legal text, which, in turn, would lead to the 'first tranche' of an unprecedented deal and later to a possible second tranche. Neither side has travelled so far so quickly, or held as many meetings and video conferences negotiators are charged up. Sometimes, Delhi has had to wait for DC to respond, belying old beliefs that Indians move slowly, if at US wants more market access for industrial goods, apples, wines, alfalfa hay, soyabean, maize and dairy products. India is open to some, but GMO foods and dairy are red lines - one is banned under law, and the other could spark riots because American cows are fed a non-veg diet. Officials will likely set the most contentious issues for wants lower tariffs on its labour-intensive exports, from leather products to garments to textiles to gems and jewellery. Greater market access for pharma and electronics would be good, too, and while you are at it, don't forget to lower US tariffs on steel, aluminium and auto there are differences on 'standards' - whose standards are right, and should one country automatically accept another's? How do you position your objections? How do you simplify/harmonise the two regulatory structures? The word 'complex' doesn't do justice to the nature of discussions, the pushing and pulling, the stretching of limits, and making the right judgements while weighing the politics of it is on the cusp of something positive in a challenging landscape where every day springs a surprise, often a nasty one. US negotiators have kept everything close to their chest - even their companies don't know the direction of the all part of the strategy of unpredictability - now fully grown from its nascency in Trump 1.0. The letter bombs dropped on Japan, South Korea, Laos, Bangladesh and even Myanmar, are nothing but a pressure campaign to shock them into submission. A letter doesn't mean Trump won't do a trade deal - a Bangladeshi delegation is already here asking for for Senator Lindsey Graham's bill, which proposes 500% tariffs on countries that buy Russian oil, gas, uranium and petrochemical products, it does allow Trump to waive those tariffs for 180 days on national security grounds. A newer version - still secret - is expected to expand Trump's ability to grant the bill is pushed in the US Congress will depend on how talks with Russia progress, or don't. Both Dems and Rs are united in their desire to punish Moscow. India, as a major buyer of Russian oil, will have a problem on hand unless given a waiver. Diplomatic efforts are underway to sensitise Graham and his staff to India's need for energy If the bill becomes law, global oil prices will likely rise, which means higher prices for Americans at the gas pump. That won't be good news for Trump. But an interim trade agreement with India would be. Elevate your knowledge and leadership skills at a cost cheaper than your daily tea. The 10-second mystery: Did the Air India crash report hide more than what it revealed? Can Indian IT's 'pyramid' survive the GenAI shake-up? Zee promoters have a new challenge to navigate. And it's not about funding or Sebi probe. The deluge that's cooling oil prices despite the Iran conflict Stock Radar: Natco Pharma stock showing signs of momentum after falling over 30% from highs – what should investors do? In mid-caps, 'just hold' often creates wealth: 10 mid-cap stocks from different sectors with upside potential up to 44% F&O Talk | Foreign outflows, IT drag pull nifty lower; next support at 24,500: Rahul Ghose How to use dividend yield in volatile times: 6 stocks where this strategy has a high chance of giving much better returns
India.com
30 minutes ago
- India.com
Bitcoin Hits Record High As US Enters ‘Crypto Week': Why Cryptocurrency Is Soaring And Washington Is Racing To Regulate
Washington D.C.: This week could become a turning point for crypto currency in the United States. Bitcoin has crossed $120,000 for the first time. At the same time, power, money and regulation are coming together in a way that may reshape how America deals with digital currency. Starting July 14, the US House of Representatives began what insiders have dubbed 'Crypto Week', a legislative showdown that could redraw the line between government control and financial freedom in the digital age. Three major bills are on the table. Their names sound technical, but their implications are seismic. At the top is the GENIUS Act, which aims to draw clear lines between securities and commodities in the crypto world – giving startups regulatory breathing room. It has already passed the Senate. Then there is the Clarity Act, which takes a swing at federal agencies like the U.S. Securities and Exchange Commission (SEC), trying to rein in their power and hand that authority back to the Congress. And finally, the Anti-CBDC Surveillance State Act, which would ban the Federal Reserve from issuing a central bank digital currency – a pushback against fears of state-run digital surveillance. In the eyes of many Republicans and of President Donald Trump in particular, this week is about liberation. No more lawsuits from the SEC. No more regulatory fog. Just 'innovation', 'freedom' and 'massive profits'. Trump has personally backed the industry's expansion, calling on lawmakers to ditch Biden-era restrictions and open the gates. 'Even if the bills stall, capital will flood back into the market,' said Bitfinex's head of derivatives Jag Kooner, speaking to Reuters. And so far, he has been right. Bitcoin surged 29% this year alone, peaking Monday (July 14) at a jaw-dropping $122,055. Ethereum touched $3,048, its highest level in five months. The crypto market's total value now hovers near $3.8 trillion. But the enthusiasm is hardly universal. Senator Elizabeth Warren is furious. She has accused Republicans, and Trump himself, of turning the U.S. government into a playground for crypto billionaires. 'This looks like another industry handout,' she said during a tense Senate hearing on July 9. She demanded a ban on public officials, including Trump, from issuing or profiting from crypto tokens – citing massive conflicts of interest. Her concerns are not baseless. The Trump family's ties to crypto run deep. From meme coins like $Trump and $Melania to the World Liberty Financial group, which earned the president over $57 million, the Trump orbit has been flooded with crypto ventures. And now, his team has filed with the SEC to launch a 'Crypto Blue-Chip ETF', further blurring the lines between public service and private fortune. Trump's crypto awakening has been swift. Once a skeptic, he now frames himself as the industry's champion. During his 2024 campaign, he welcomed crypto donations, courted blockchain entrepreneurs and promised to make the United States 'the crypto capital of the world'. That promise seems closer to reality than ever before. And it is paying off. Since Trump's re-election in November 2024, Bitcoin has skyrocketed 75%, vaulting from $69,539 on Election Day to record highs. At this point, Bitcoin's total value would place it among the world's ten largest economies, alongside Canada and Brazil. But volatility has not vanished. In February, Bitcoin briefly dropped below $90,000 after Trump stunned markets with sweeping tariffs on U.S. allies. Still, the coin rebounded, and then some, after Trump doubled down on crypto by announcing a federal 'crypto reserve' that would include five digital currencies, including Bitcoin. Amid global economic instability – trade wars, ongoing conflicts in Ukraine and the Middle East and wild market swings – Bitcoin has emerged as both a financial escape hatch and a political weapon. More than any other U.S. president, Trump has embraced it as both. Supporters say this week marks the turning point for America's crypto industry. Critics say it is the beginning of its capture. Either way, Crypto Week is here, and the stakes have never been higher. Whether it ends in boom or bust, one thing is certain that the lines between finance, politics and technology are being redrawn live on the floor of the Congress. Washington D.C.: This week could become a turning point for crypto currency in the United States. Bitcoin has crossed $120,000 for the first time. At the same time, power, money and regulation are coming together in a way that may reshape how America deals with digital currency. Starting July 14, the US House of Representatives began what insiders have dubbed 'Crypto Week', a legislative showdown that could redraw the line between government control and financial freedom in the digital age. Three major bills are on the table. Their names sound technical, but their implications are seismic. At the top is the GENIUS Act, which aims to draw clear lines between securities and commodities in the crypto world – giving startups regulatory breathing room. It has already passed the Senate. Then there is the Clarity Act, which takes a swing at federal agencies like the U.S. Securities and Exchange Commission (SEC), trying to rein in their power and hand that authority back to the Congress. And finally, the Anti-CBDC Surveillance State Act, which would ban the Federal Reserve from issuing a central bank digital currency – a pushback against fears of state-run digital surveillance. In the eyes of many Republicans and of President Donald Trump in particular, this week is about liberation. No more lawsuits from the SEC. No more regulatory fog. Just 'innovation', 'freedom' and 'massive profits'. Trump has personally backed the industry's expansion, calling on lawmakers to ditch Biden-era restrictions and open the gates. 'Even if the bills stall, capital will flood back into the market,' said Bitfinex's head of derivatives Jag Kooner, speaking to Reuters. And so far, he has been right. Bitcoin surged 29% this year alone, peaking Monday (July 14) at a jaw-dropping $122,055. Ethereum touched $3,048, its highest level in five months. The crypto market's total value now hovers near $3.8 trillion. But the enthusiasm is hardly universal. Senator Elizabeth Warren is furious. She has accused Republicans, and Trump himself, of turning the U.S. government into a playground for crypto billionaires. 'This looks like another industry handout,' she said during a tense Senate hearing on July 9. She demanded a ban on public officials, including Trump, from issuing or profiting from crypto tokens – citing massive conflicts of interest. Her concerns are not baseless. The Trump family's ties to crypto run deep. From meme coins like $Trump and $Melania to the World Liberty Financial group, which earned the president over $57 million, the Trump orbit has been flooded with crypto ventures. And now, his team has filed with the SEC to launch a 'Crypto Blue-Chip ETF', further blurring the lines between public service and private fortune. Trump's crypto awakening has been swift. Once a skeptic, he now frames himself as the industry's champion. During his 2024 campaign, he welcomed crypto donations, courted blockchain entrepreneurs and promised to make the United States 'the crypto capital of the world'. That promise seems closer to reality than ever before. And it is paying off. Since Trump's re-election in November 2024, Bitcoin has skyrocketed 75%, vaulting from $69,539 on Election Day to record highs. At this point, Bitcoin's total value would place it among the world's ten largest economies, alongside Canada and Brazil. But volatility has not vanished. In February, Bitcoin briefly dropped below $90,000 after Trump stunned markets with sweeping tariffs on U.S. allies. Still, the coin rebounded, and then some, after Trump doubled down on crypto by announcing a federal 'crypto reserve' that would include five digital currencies, including Bitcoin. Amid global economic instability – trade wars, ongoing conflicts in Ukraine and the Middle East and wild market swings – Bitcoin has emerged as both a financial escape hatch and a political weapon. More than any other U.S. president, Trump has embraced it as both. Supporters say this week marks the turning point for America's crypto industry. Critics say it is the beginning of its capture. Either way, Crypto Week is here, and the stakes have never been higher. Whether it ends in boom or bust, one thing is certain that the lines between finance, politics and technology are being redrawn live on the floor of the Congress.
Time of India
31 minutes ago
- Time of India
US tariff reset boosts India's export edge: Niti Aayog says India gains ground in 100 product lines, services and tech drive Q3 resilience
AI image India stands to expand its footprint in the US market under Washington's evolving tariff regime, with favourable differentials in over 100 key product categories, according to the government think tank Niti Aayog 's Trade Watch Quarterly report for Q3 FY25. 'India is expected to gain competitiveness in 22 of the top 30 product categories at the HS-2 level, covering 61% of its exports to the US and 68% of total US imports in these categories,' the report said. At a more detailed HS-4 level, India has a favourable tariff differential in 78 of the top 100 products, accounting for around 52% of its shipments to the US. The opportunity arises from higher US import tariffs on key trade partners such as China, Canada, Mexico, Vietnam, and Thailand. This policy shift, which includes a baseline 10% duty on all imports since April 2025, presents Indian exporters with a 'strategic window' to gain share in sectors ranging from nuclear reactors and electrical machinery to vehicles, apparel, and textiles. Even in six of the top 30 HS-2 product lines where India faces a tariff disadvantage, the gap is just around 1%, keeping it broadly competitive, the think tank noted. Despite global demand headwinds and geopolitical uncertainty, India's Q3 FY25 trade data reflected 'cautious resilience'. Merchandise exports grew 3% year-on-year to $108.7 billion, while imports rose 6.5% to $187.5 billion—widening the merchandise trade deficit to $78.7 billion. However, services exports surged 17% to $102.6 billion, creating a $52.3 billion surplus that 'partially offset' the goods trade gap. Niti Aayog highlighted that India ranked as the world's fifth-largest exporter of Digitally Delivered Services (DDS) in 2024, clocking $269 billion in exports. This was driven by segments such as IT services, professional consulting, and R&D outsourcing. Among merchandise exports, the report noted a sharp rise in high-tech and value-added sectors. Aircraft, spacecraft, and related parts surged by over 200% and entered the top 10 export categories for the first time, thanks to demand from Saudi Arabia, the UAE, and the Czech Republic. India's high-tech exports reached $80.6 billion in 2024, growing at a CAGR of 10.6% since 2014 and accounting for 18.3% of total merchandise exports. Electrical machinery and parts now make up half of India's high-tech shipments, surpassing nuclear reactors and boilers. In digitally delivered trade, 'Other Business Services' accounted for 53% of 2024 DDS exports, while 'Computer Services' contributed 39%, aligning with global patterns. The think tank stressed that new trade alignments—particularly India's relative tariff edge in the US—underscore the importance of agile policy responses. 'India must deepen global value chain integration, expand production-linked incentive schemes to labour-intensive sectors, and pursue services-focused trade agreements,' the report said. It added that a deal with the US should prioritise digital trade, cross-border data flows, and mutual recognition of standards to further widen India's export footprint. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
