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Time of India
9 hours ago
- Business
- Time of India
Currency watch: Rupee slips 17 paise to 87.75 against US dollar; importer demand and higher crude prices weigh on sentiment
The rupee reversed early gains to end 17 paise lower at 87.75 against the US dollar on Monday, pressured by persistent importer demand for the greenback, a rebound in crude oil prices, and foreign fund outflows. 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.
The Hindu
13 hours ago
- Business
- The Hindu
Rupee falls 8 paise to close at 87.66 against U.S. dollar
Rupee pared initial gains and settled for the day on a negative note, lower by 8 paise at 87.66 (provisional) against the U.S. dollar on Monday (August 11, 2025), as it came under pressure due to continued dollar demand by importers and a rebound in crude oil prices. Forex traders said the rupee pared initial gains on positive crude oil prices, dollar demand from importers and foreign fund outflows. At the interbank foreign exchange, the domestic unit opened at 87.56 and moved in a range of 87.48 to 87.66 during the day before settling at 87.66 (provisional), lower by 8 paise from its previous close. On Friday (August 8, 2025), the rupee pared its intra-day losses and ended flat at 87.58 against the U.S. dollar. 'The Indian rupee opened higher on weak U.S. dollar index and positive domestic markets. However, the rupee pared initial gains on positive crude oil prices and FII outflows,' said Anuj Choudhary, Research Analyst, Commodities Research, Mirae Asset Sharekhan. Mr. Choudhary further said that 'we expect the rupee to trade with a negative bias amid uncertainty over trade tariff issues between India and U.S. 'Persistent FII outflows may also weigh on the domestic currency. However, weak U.S. dollar may support the rupee at lower levels. Investors may remain cautious ahead of U.S. inflation data this week. USD-INR spot price is expected to trade in a range of 87.35 to 88,' he said. Meanwhile, Brent crude prices rose 0.03% to $66.61 per barrel in futures trade. The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.10% to 98.28. Meanwhile, investors are in a wait-and-watch mode for the U.S. and India CPI inflation and are also awaiting cues from the U.S.-Russia talks on August 15. India on Saturday (August 9, 2025) welcomed next week's talks between U.S. President Donald Trump and his Russian counterpart Vladimir Putin on the Ukraine war and reaffirmed Prime Minister Narendra Modi's consistent position that it is not an 'era of war'. India has been consistently calling for ending the Russia-Ukraine conflict through dialogue and diplomacy. In the domestic equity market, Sensex jumped 746.29 points to settle at 80,604.08, while the Nifty climbed 221.75 points to close at 24,585.05. Meanwhile, India's forex reserves dropped by $9.322 billion to $688.871 billion for the week ended August 1 in one of the highest declines in the recent past, the RBI data showed on Friday (August 8, 2025). The overall reserves rose by $2.703 billion to $698.192 billion in the previous reporting week. Foreign institutional investors (FIIs) turned net buyers after several days and purchased equities worth ₹1,932.81 crore on Friday (August 8, 2025), according to exchange data. Forex traders said uncertainty revolving around the trade war pressurised the rupee. On August 6, the United States announced an additional 25% tariff on all Indian imports, on top of an existing 25% duty, taking the total duty to 50% effective August 27.
Time of India
3 days ago
- Business
- Time of India
Currency watch: Rupee ends flat at 87.58 as dollar weakens, FIIs turned net buyers amid looming US tariff deadline
The rupee pared early losses and ended flat at 87.58 against the US dollar on Friday, supported by a weaker greenback and a return of foreign fund inflows, even as escalating trade tensions with the US kept market sentiment under pressure. Tired of too many ads? go ad free now Forex traders said the Indian currency moved in a narrow range during the session, amid weakness in domestic equities and caution around President Donald Trump's fresh tariff actions, which are set to take effect later this month. At the interbank foreign exchange, the rupee opened at 87.56 and moved between 87.52 and 87.75, before closing unchanged from its previous level. On Thursday, the currency had gained 14 paise, PTI reported. 'Uncertainty revolving around the trade war pressurised the rupee. However, softness in crude oil prices prevented a sharp fall,' said Anuj Choudhary, Research Analyst, Commodities and Currencies at Mirae Asset Sharekhan. The dollar index eased 0.16% to 98.24, reflecting broader weakness in the US currency amid rising expectations of a Federal Reserve rate cut and signs of a softening labour market. On August 6, the US announced an additional 25% tariff on all Indian imports—on top of an existing 25% duty—raising total duties to 50%, among the highest ever imposed on any country by the US. The new levy will take effect on August 27. Trump has also ruled out renewed trade talks with India unless the tariff issue is resolved. 'No, not until we get it resolved,' he said in the Oval Office on Thursday, when asked about the possibility of reopening negotiations. The US president's recent executive order links the additional tariff burden to India's continued purchase of Russian oil, a move that has drawn criticism from trade analysts and import-dependent industries. Tired of too many ads? go ad free now On the domestic front, foreign institutional investors (FIIs) turned net buyers after several days, purchasing Rs 1,932.81 crore worth of equities on Friday, as per exchange data. However, broader markets remained under pressure. The Sensex fell 765.47 points to settle at 79,857.79, while the Nifty declined 232.85 points to 24,363.30. Brent crude futures were up 0.60% to $66.83 per barrel, helping cushion rupee downside. Meanwhile, India's forex reserves fell by $9.322 billion to $688.871 billion for the week ended August 1 — one of the steepest weekly drops in recent months, RBI data showed. In the previous week, reserves had risen by $2.703 billion.
The Wire
6 days ago
- Business
- The Wire
Rupee Falls to All-Time Low of 87.88 Against US Dollar Amid Trump's Threats to Increase Tariff
Business In the domestic equity market, the BSE Sensex declined 308.47 points and settled at 80,710.25, while the Nifty was down 73.20 to 24,649.55. New Delhi: The rupee fell to its all-time low level on Tuesday (August 5), ending with a loss of 22 paise at 87.88 against the US dollar amid fresh threats by US president Donald Trump to increase tariffs on Indian goods over the country continuing its oil purchases from Russia. Forex traders predicted that the rupee is expected to slide further, reported Press Trust of India. At the interbank foreign exchange, rupee opened at 87.95 against the greenback, its lowest-ever intra-day level that was previously recorded on February 10 this year. During the session, it touched the high of 87.75 against the American currency and at the end closed at 87.88, down 22 paise over its previous close. Earlier on Monday (August 4), the rupee had depreciated 48 paise to close at 87.66 against the US dollar. "We expect the rupee to continue to slide as India-US trade deal uncertainty continues to dent domestic market sentiments. Weak tone in the domestic equities and FII outflows may further pressurise the rupee," said Anuj Choudhary, Research Analyst, Commodities Research, Mirae Asset Sharekhan, reported PTI. In the domestic equity market, the BSE Sensex declined 308.47 points and settled at 80,710.25, while the Nifty was down 73.20 to 24,649.55. Foreign institutional investors (FIIs) offloaded equities worth Rs 22.48 crore on a net basis on Tuesday, exchange data reveals. Indian households deal with a surge in food prices Meanwhile, owing to a weakening rupee along with factors such as, heavier-than-expected monsoon rain and lower crop production, Indian households are dealing with a surge in food prices. In the last one month, prices of key staples including edible oils, rice, various flours and vegetables have increased sharply, putting pressure on kitchen budgets across the country, reported Economic Times. Among the commodities which saw an increase included prices of mustard and sunflower oil, rice, and tomatoes rising by 50% sequentially in the last two-four weeks. Wheat flour (atta), refined flour (maida), semolina (suji), and sugar have also witnessed price increases of up to 6% over the past month and are 8-12% higher year-on-year. Prices of palm, sunflower, and soybean oil – that make up over 85% of India's edible oil consumption – have surged since the past two months due to limited supply and low inventories,' said Rahul Guha, senior director at Crisil Ratings, reported ET. According to industry data, in the past one month, prices of atta, maida, and suji have increased 5-5.5%, while wheat is up 3%, shows industry data. The Wire is now on WhatsApp. Follow our channel for sharp analysis and opinions on the latest developments.
Mint
6 days ago
- Business
- Mint
INR vs USD: Indian rupee falls to record low! Opportunity to buy IT stocks for short-term?
INR vs USD: Indian Rupee appreciated by 15 paise to reach 87.73 against the US dollar in early trading on Wednesday, August 6, supported by a softer dollar. On Tuesday, rupee slipped back to its record low and closed 22 paise weaker at 87.88 against the US dollar on August 5, as investor sentiment turned risk-averse following renewed tariff threats from US President Donald Trump in response to India's ongoing imports of Russian oil. According to forex traders, gains in the domestic currency were limited due to an increase in global Brent crude prices and continued outflows from foreign institutional investors (FIIs). They added that markets remained cautious, awaiting clarity on the outcome of the US tariffs. ' Indian Rupee opened weak, briefly breaching the 88 per Dollar mark as US President Donald Trump threatened additional tariffs on India amid oil imports from Russia. Weak domestic markets too weighed on the rupee. However, Rupee pared initial losses on supposed intervention by the RBI. A soft US Dollar and overnight decline in crude oil prices also cushioned the downside,' said Anuj Choudhary, Research Analyst, Commodities Research| Mirae Asset Sharekhan. Choudhary further said that the Indian currency to likely to slide as India-US trade deal uncertainty continue to dent domestic market sentiments. ' Weak tone in the domestic equities and FII outflows may further pressurise the Rupee. Market expect a rate cut by the central bank. However, overall weakness in the US Dollar amid rising odds of a rate cut by the Fed in September may support the Rupee at lower levels. Traders may take cues from ISM services PMI data from the US. USDINR spot price is expected to trade in a range of ₹ 87.50 to ₹ 88.20,' he added. Meanwhile, Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, believes that the Indian Rupee is likely to remain volatile and remain under pressure. ' Rupee traded weak at 87.80 as panic gripped markets following a late-evening post by the US President hinting at higher tariffs on India. Additionally, expectations that the US may pressure India to reduce Russian oil imports sparked fears of a higher import bill, pushing the rupee briefly below the 88.00 mark overnight. Some recovery was seen after the Ministry of External Affairs clarified India's stance on crude purchases. However, the ongoing friction between the US and India on trade and energy is likely to keep the rupee volatile and under pressure. The rupee is expected to trade in the 87.40–88.25 range,' Trivedi said. Anuj Gupta, Director, Ya Wealth Research & Advisory recommended to invest in Indian IT stocks amid weak Rupee. ' This is a good opportunity to invest in export sector particular like IT, Textile, Pharma & Gem& jewellery . However trump is expecting to impose more aggressive tariffs, but due to weakness in rupee may curb this impact on the exports. The value of export from India to Us is approx $86.5 billion, which can be shrinked due to tariff, but weakness in rupee may curb this down fall value of the export,' Gupta said. Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
