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Forex merchants mentioned the rupee misplaced momentum as worries over the looming 25% U.S. tariff on Indian items, set to take impact from August 27, drove robust greenback demand from importers.
The United States has issued a draft discover detailing plans to implement the extra 25% tariff on Indian merchandise, as beforehand introduced by President Donald Trump.
At the interbank overseas trade market, the rupee opened at 87.74 in opposition to the U.S. greenback, then fell to 87.78, registering a decline of twenty-two paise over its earlier shut.
In the preliminary commerce, the rupee touched an early excessive of 87.69 in opposition to the dollar.
On Monday, the rupee pared preliminary good points to settle 4 paise decrease at 87.56 in opposition to the U.S. greenback.
“With the bias still tilted toward depreciation, the rupee has already breached the 87.50 mark. The next hurdle stands at 87.80, a level where the RBI has often acted as a strong barrier against further weakness,” CR Forex Advisors Managing Director Amit Pabari mentioned.
Moreover, hopes that the strain may ease have been dashed after indicators emerged that Ukraine-Russia peace talks had stalled — reinforcing the view that Washington is unlikely to melt its stance on tariffs, Pabari added.
Meanwhile, the greenback index, which gauges the dollar’s energy in opposition to a basket of six currencies, fell 0.05 per cent to 98.38.
“The US dollar index dipped a bit after President Trump fired Federal Reserve Governor Lisa Cook over alleged mortgage fraud, a move that has heightened concerns over the FED Reserve’s independence,” mentioned Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP.
Brent crude, the worldwide oil benchmark, was buying and selling 0.41% decrease to $68.52 per barrel in futures commerce, as merchants weighed the prospects of further US sanctions on Russia in opposition to indicators of progress in peace efforts to finish the conflict in Ukraine.
On the home fairness market entrance, the Sensex declined 546.87 factors or 0.67% to 81,089.04, whereas the Nifty was buying and selling down 179.05 factors or 0.72% to 24,788.70.
Foreign Institutional Investors offloaded equities price ₹2,466.24 crore on Monday (August 25, 2025), in keeping with trade knowledge.
Published – August 26, 2025 10:04 am IST
