Rupee falls 16 paise to shut at 87.82 in opposition to U.S. greenback

The rupee depreciated 16 paise to shut at 87.82 (provisional) in opposition to the U.S. greenback on Tuesday (August 5, 2025), as risk-off sentiment deepened after U.S. President #Donald Trump renewed his menace to boost tariffs on #Indian items over #New Delhi’s continued purchases of Russian oil.

Forex merchants stated the rupee is prone to slide additional as #India-U.S. commerce deal uncertainty continues to dent home market sentiments.

Moreover, weak fairness markets dented traders’ sentiments additional. However, the home unit pared preliminary losses on supposed intervention by the Reserve Bank of #India (RBI).

A tender U.S. greenback and in a single day decline in crude oil costs additionally cushioned the draw back to some extent, they stated.

At the interbank overseas trade, the home unit opened at 87.95 in opposition to the buck, and throughout the day, it touched an intra-day excessive of 87.75 in opposition to the American forex.

At the tip of Tuesday’s (August 5, 2025) buying and selling session, the home unit was at 87.82 (provisional), down 16 paise over its earlier shut.

On Monday (August 3, 2025), the rupee depreciated 48 paise to shut at 87.66 in opposition to the U.S. greenback.

In a contemporary commerce menace in opposition to #India, President #Donald Trump on Monday (August 3, 2025) stated he’ll “substantially” increase U.S. tariffs on #New Delhi, accusing it of shopping for huge quantities of Russian oil and promoting it for giant earnings.

Last week, the Trump administration slapped a 25% responsibility on all #Indian items. The U.S. president additionally introduced a penalty for purchasing “vast majority” of Russian navy gear and crude oil.

“We expect the rupee to continue to slide as #India-U.S. trade deal uncertainty continues to dent domestic market sentiments. Weak tone in the domestic equities and FII outflows may further pressurise the rupee,” Anuj Choudhary, Research Analyst, Commodities Research, Mirae Asset #Sharekhan, stated.

Mr. Choudhary added that “the rupee may also remain weak ahead of the RBI’s monetary policy. Market expects a rate cut by the central bank. However, overall weakness in the U.S. dollar amid rising odds of a rate cut by the Fed in September may support the rupee at lower levels”.

Meanwhile, traders stay cautious forward of the RBI financial coverage resolution this week.

RBI Governor Sanjay Malhotra-headed rate-setting panel on Monday (August 3, 2025) began the three-day deliberations to determine the following bi-monthly financial coverage.

The six-member Monetary Policy Committee (MPC) is scheduled to announce the following bi-monthly coverage fee on Wednesday (August 6, 2025).

Meanwhile, Brent crude costs fell 0.97% to $68.09 per barrel in futures commerce, after OPEC+ agreed to hike one other massive output improve in September, including to oversupply issues after U.S. information confirmed lacklustre gasoline demand.

The greenback index, which gauges the buck’s power in opposition to a basket of six currencies, rose 0.18% to 98.68.

In the home fairness market, the 30-share BSE Sensex superior 308.47 factors, or 0.38%, to shut at 80,710.25, whereas the Nifty rose 73.20 factors, or 0.30%, to settle at 24,649.55.

Foreign institutional traders (FIIs) offloaded equities value $2,566.51 crore on a web foundation on Monday (August 3, 2025), in line with trade information.