&w=3840&q=100)
Rupee slides past 87/$ as Trump's tariff remarks, oil rally weigh
The domestic currency opened 28 paise lower at 87.10 against the dollar on Wednesday, the lowest level since March 13 this year, according to Bloomberg. The local unit has depreciated 1.57 per cent so far this month and 1.78 per cent in this calendar year so far.
The weakness in currency came after US President Donald Trump's statement that India may face a tariff rate of 20 to 25 per cent. He, however, cautioned that the final levy still was not finalised.
The Rupee breached the key resistance level of 86.90, a zone where the Reserve Bank of India (RBI) was actively intervening yesterday, with the currency rebounding three times from that level, Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP, said. Unless the RBI steps in again via the offshore Non-Deliverable Forward (NDF) market, the opening could remain under pressure, he said.
Exporters are expected to continue holding onto their dollar earnings, while importers may remain active in the spot market for purchases until better hedging levels emerge, he said.
Adding to the downward pressure are persistent foreign portfolio investor (FPI) outflows from Indian equities, with capital being redirected toward developed markets that are currently trading at record highs, analysts noted.
FPIs have sold Indian equities for the seventh straight session in the secondary market, according to data from NSE. On Tuesday, FPIs offloaded stocks worth ₹4,636.60crore. In the last seven sessions, global funds have sold stocks worth ₹24271.98 crore.
The dollar index is poised for the best month this year, with the measure of the greenback against a basket of six major currencies, down 0.16 per cent at 98.72.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
India.com
14 minutes ago
- India.com
Meet T-14 Armata Tank, super powerful war weapon offered by Russia to India, its features are..., Trump to...
New Delhi: US President Donald Trump is not happy with India and Russia's friendship and is threatening both countries with tariffs. Amidst this, the two countries are discussing a crucial defence deal that might further enrage Trump. What has Russia offered to India? Russia has offered to sell the next-generation T-14 Armata tanks to India to replace its ageing T-72 tanks with new tanks. Russia's offer includes domestic manufacturing in India under the Make in India programme. Armata tanks are made by the Russian company Uralvagonzavod, and the T-14 Armata is its most advanced tank. Uralvagonzavod has offered to design and develop this tank according to India's needs for its Next Generation Battle Tank (NGMBT) programme. For this, the Russian company has shown interest in partnering with Indian defence companies. What is the crux of the proposal? The proposal includes possible collaboration with India's Combat Vehicle Research and Development Establishment (CVRDE) or other public sector defence units. The proposal is strategically prepared according to India's 'Make-I' procurement category, which aims to increase India's indigenous production. Under this plan, the Government of India provides up to 70% of the funding for developing prototypes, which emphasises domestic manufacturing and technology transfer. Will India buy the advanced T-14 Armata tank? Uralvagonzavod had signed a technology transfer agreement with India for T-90S tanks, which are now manufactured in India as T-90 Bhishma. India uses more than 83 per cent domestic technology in the T-90S tank, including complete localisation of the tank's engine. Russian officials have also expressed their intention to work with India for the local production of the T-14 Armata tank project. Company officials have suggested that the T-14 Armata would be an ideal successor to replace the Indian Army's huge but ageing fleet of T-72 tanks. Why is T-14 Armata considered one of the most advanced tanks in the world? The T-14 Armata is considered one of the most advanced tanks in the world. It has many remotely operated functions, an armoured capsule for the crew, a state-of-the-art digital control system and an active protection system (APS) called 'Afghanit'. This system is capable of destroying the enemy's anti-tank missiles on the way. Three operators can sit inside this tank and destroy the enemy's anti-tank missiles and RPGs in the air. It has a millimetre-wave radar, which provides 360-degree protection. Guided missiles can also be fired from this tank up to 8–10 kilometres. The maximum speed of this tank is 75 to 80 kilometres per hour, and its range is 500 kilometres. The weight of this tank is 55 tonnes, and its cost is around Rs 30 to 42 crore. If it is manufactured in India, its cost will be reduced by at least Rs 10 crore.
India.com
14 minutes ago
- India.com
PM Modi, HM Shah Meet President Murmu At Rashtrapati Bhavan
Prime Minister Narendra Modi and Home Minister Amit Shah on Sunday separately called on President Droupadi Murmu at the Rashtrapati Bhavan here. The meetings came just a day before the ongoing Monsoon Session of the Parliament resumes on Monday. Taking to X, the Rashtrapati Bhavan posted: "Prime Minister Shri @narendramodi called on President Droupadi Murmu at Rashtrapati Bhavan." It shared pictures of PM Modi and President Murmu. Another post read: "Union Minister for Home Affairs and Cooperation, Shri Amit Shah called on President Droupadi Murmu at Rashtrapati Bhavan." Details related to either of the meetings were not immediately available. The meetings came against the backdrop of heated exchanges witnessed in the Parliament over the Special Intensive Revision process in Bihar ahead of the Assembly elections in the eastern state. PM Modi met President Murmu just a day after he said that the welfare of farmers, small industries, and youth remains the government's 'top priority' as the country stays on track to become the world's third-largest economy, even as US President Donald Trump announced that 25 per cent tariffs would be imposed on India from August 7. PM Modi reaffirmed the resilience of the Indian economy amid turbulence triggered by US tariff hikes, saying that the country must remain vigilant about its economic interests and adopt 'swadeshi' products. 'There is an atmosphere of global instability. All countries are focusing on their individual interests. India is going to become the third biggest economy in the world, and this is why India will have to stay alert as far as its economic interests are concerned,' the Prime Minister said during a rally in Varanasi on Saturday. Earlier this week, Trump announced 25 per cent reciprocal tariffs on Indian goods. He said India would also face an additional tariff penalty for buying Russian oil. The Parliament has seen little business since the Monsoon Session commenced on July 21.
Economic Times
14 minutes ago
- Economic Times
Hardeep Singh Puri & Fadnavis counter Rahul Gandhi's ‘dead economy' claim with IMF data
Union Minister Hardeep Puri and Maharashtra Chief Minister Devendra Fadnavis on Sunday said the India's economy is "strong, steady, resilient" and its growth story continues. These statements come after Congress leader Rahul Gandhi in a X post on Thursday echoed US President Donald Trump's view that the Indian economy was "dead", and targeted Prime Minister Narendra Modi. The Maharashtra Chief Minister attached the latest IMF World Economic Outlook report, wherein it projected India's growth in 2025 and 2026 at 6.4 per cent -- the highest among the fastest major IMF report pegged the US's growth at 1.9 per cent and 2.0 per cent, respectively. For China, the rates were pegged at 4.8 per cent and 4.2 per cent, respectively. — HardeepSPuri (@HardeepSPuri) Fadnavis attributed this projected economic growth to the "visionary leadership" of Prime Minister Narendra Modi. "Under the visionary leadership of Hon PM Narendra Modi Ji, India continues its steady and resilient economic growth, earning global recognition among emerging market and developing economies," he wrote on X. "These projections place India among the top emerging market and developing economies with consistent performance over the years," he added, referring to the latest IMF projections. "This is the result of focused governance, structural reforms and unwavering commitment to a Viksit Bharat." On similar lines, attaching the same IMF report, Union Minister Hardeep Puri also lauded the country's growth journey. "India is at the forefront of the global economy! Despite uncertainties prevailing worldwide, India will remain the fastest-growing economy. These figures are a strong response to those who lack faith in India's capabilities. This pace indicates that India will soon further strengthen its position among the world's leading economic powers," Minister Puri wrote on X, in Chief Minister Himanta Biswa Sarma had also earlier this week shared the same IMF report to affirm that India's economy was set to "grow as a robust economy and is poised to be the fastest growing emerging market in 2025 and 2026 as well."In September 2022, India had surpassed the UK to become the fifth-largest economy in the has made quite a turnaround, climbing the ladder of economic growth. This can be gauged from the fact that it was ranked 11th in 2013-14, and India has now positioned itself to become the fourth-largest economy 2013, India was placed in the league of 'Fragile 5' economies. The term 'Fragile 5' was coined by a Morgan Stanley analyst and refers to a set of five emerging countries, including India, whose economies were not doing well. The other four countries were Brazil, Indonesia, South Africa, and realise the vision of 'Viksit Bharat' or a developed nation dream by 2047, India will need to achieve a growth rate of around 8 per cent at constant prices, on average, for about a decade or two, the Economic Survey document for 2024-25 tabled on January 31 expected lines, the Indian economy grew by 6.5 per cent in real terms in the recently concluded financial year 2024-25. In 2023-24, India's GDP grew by an impressive 9.2 per cent, continuing to be the fastest-growing major to official data, the economy grew 8.7 per cent and 7.2 per cent, respectively, in 2021-22 and 2022-23. (With agency inputs)
