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According to foreign exchange specialists, amid rising tensions with the U.S. and financial considerations, the rupee remained weak and will see additional draw back as uncertainty continues to mount. File | Photo Credit: The Hindu
Forex merchants stated Mr. Trump’s aggressive transfer, which kicks in 21 days, threatens to boost whole duties on choose Indian exports to as excessive as 50 per cent — making them among the many most closely taxed U.S. imports globally.
At the interbank international trade, the home unit opened at 87.69 towards the U.S. greenback then touched an preliminary excessive of 87.67, larger by 5 paise over its earlier shut.
On Wednesday (August 6), the rupee rebounded from a file low degree and closed 16 paise larger at 87.72 towards the U.S. greenback.
Mr. Trump’s tariffs on Indian exports are prone to hit sectors akin to textiles, marine and leather-based exports exhausting and was slammed by India as “unfair, unjustified and unreasonable”.
With this motion singling out New Delhi for the Russian oil imports, India will entice the very best U.S. tariff of fifty per cent together with Brazil.
The United States has imposed this extra tariff or penalty for Russian imports solely on India whereas different consumers akin to China and Turkey have thus far escaped such harsh measures. The 30 per cent tariff on China and 15 per cent on Turkey is decrease than India’s 50 per cent.
“The escalation adds to concerns over the economic impact. If no breakthrough happens within the 21-day window, FY26 GDP growth may have to be revised below 6 per cent, factoring in a 40–50 basis point hit — twice the earlier estimate from tariff effects,” CR Forex Advisors MD Amit Pabari stated.
Mr. Pabari additional famous that amid these rising tensions and financial considerations, the rupee stays weak and will see additional draw back as uncertainty continues to mount.
Meanwhile, the Reserve Bank of India opted to carry the repo price regular at 5.50 per cent and retained a impartial stance throughout its newest coverage overview.
“The decision suggests policymakers are adopting a wait-and-watch approach as they weigh the uncertain trade backdrop against an already slowing global economy,” Mr. Pabari stated, including that the room for manoeuvre is tightening.
India’s international trade reserves fell by $9.3 billion to $688.9 billion as of August 1, reflecting Central Bank’s energetic rupee defence operations amid rising exterior stress, he stated.
Meanwhile, Brent crude costs rose 0.99 per cent to $67.55 per barrel in futures commerce.
The greenback index, which gauges the dollar’s energy towards a basket of six currencies, rose 0.04 per cent to 98.21.
In the home fairness market, Sensex dropped 335.71 factors to 80,208.28 in early commerce, whereas the Nifty declined 114.15 factors to 24,460.05.
Foreign institutional traders (FIIs) offloaded equities price ₹4,999.10 crore on a internet foundation on Wednesday, in accordance with trade information.
Published – August 07, 2025 10:19 am IST
