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Forex merchants stated the near-term route of the rupee will rely on two key occasions — the implementation of the August 27 tariff and upcoming U.S. financial information forward of the Federal Reserve’s September 17 assembly.
At the interbank international alternate, the rupee opened at 87.38, then touched an early excessive of 87.34, registering a acquire of 18 paise over its earlier shut.
On Friday, the rupee fell 27 paise to shut at 87.52 towards the buck.
The rupee continued its weak point towards the greenback on Friday (August 22, 2025) and on Monday (August 25, 2025) opened barely greater as U.S.-India commerce tensions proceed to hamper its worth amid expectations of a Fed price reduce, stated Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.
“The RBI seems to have been actively intervening to curb excessive depreciation,” Mr. Bhansali stated, including that the native unit could be below stress if outflows speed up as a result of 25 bps additional commerce tariffs by the Trump Administration on August 27.
Meanwhile, Republican chief Nikki Haley has stated that India ought to take President Donald Trump’s issues over its procurement of Russian crude oil critically and work with the White House to discover a resolution to the difficulty.
The Trump administration has been severely essential of India for its procurement of discounted crude oil from Russia. Interestingly, Washington has not been criticising China, the most important importer of Russian crude oil.
Defending its buy of Russian crude oil, India has been sustaining that its vitality procurement is pushed by nationwide curiosity and market dynamics.
Meanwhile, the greenback index, which gauges the buck’s energy towards a basket of six currencies, gained 0.15% to 97.86, after dropping sharply final week as a result of U.S. Fed’s sign of a possible price reduce.
The Fed Chairman Jerome Powell’s remarks at Jackson Hole indicated that price cuts could also be thought of as dangers within the US labour market construct, resulting in an 87% likelihood of a 25 bps price reduce.
Brent crude, the worldwide oil benchmark, was buying and selling 0.10 per cent greater to USD 67.80 per barrel in futures commerce, as expectations of a US price reduce buoyed the outlook for international development and gas demand.
On the home fairness market entrance, the Sensex climbed 285.62 factors to 81,592.47 in early commerce, whereas the Nifty was up 91.25 factors to 24,961.35.
Foreign Institutional Investors offloaded equities price ₹1,622.52 crore on Friday (August 22, 2025), in line with alternate information.
Meanwhile, India’s foreign exchange reserves rose by $1.488 billion to $695.106 billion throughout the week ended August 15, in line with RBI information launched on Friday.
In the earlier reporting week, the general reserves had elevated by $4.747 billion to $693.618 billion.
Published – August 25, 2025 10:12 am IST
