Rupee falls 2 paise to 86.40 against US dollar in early trade
According to forex traders, positive sentiment in domestic equity markets capped a sharp fall in the rupee even as the American currency strengthened after the US announced a trade deal with Japan.
At the interbank foreign exchange, the domestic unit opened weak at 86.46 and recovered slightly to trade at 86.40 against the greenback in initial deals, 2 paise lower from its previous closing level.
At the end of Tuesday's trading session, the local unit settled at 86.38, down 7 paise over its previous close. This was the rupee's fifth straight session of decline since July 16 when the unit had lost 16 paise and ended at 85.92 against the dollar.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.04 per cent to 97.15, after the US announced a trade deal with Japan.
Brent crude, the global oil benchmark, went up by 0.29 per cent to USD 68.79 per barrel in futures trade.
Analysts said investors are keeping a close watch on the outcome of India-US trade talks ahead of the August 1 deadline as Indian exporters are staring at higher tariffs in American market.
If the discussions fail or get delayed, Indian exporters could face fresh pressure — adding to the rupee's challenges.
The US team will visit India in August for the next round of negotiations for the proposed bilateral trade agreement between the two countries.
India and the US teams concluded the fifth round of talks for the agreement last week in Washington.
Meanwhile, in the domestic equity market, Sensex advanced 209.09 points or 0.25 per cent to 82,395.90, while Nifty rose 60.45 points or 0.24 per cent to 25,121.35.
Foreign institutional investors (FIIs) offloaded equities worth Rs 3,548.92 crore on a net basis on Tuesday, according to exchange data. PTI HVA ANU ANU
(This story has not been edited by News18 staff and is published from a syndicated news agency feed - PTI) view comments
First Published:
July 23, 2025, 10:00 IST
Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
8 minutes ago
- Economic Times
The India-Italy partnership as champions for the Global South and the Indo-Mediterranean
Agencies India-Italy partnership On the 1st of March 2006, addressing the US Congress, the then Italian Prime Minister Silvio Berlusconi warned that over the next 25 years, two billion more people would mostly be born in countries excluded from prosperity, creating a world split between six billion living in poverty and fewer than two billion in wealth. He said this imbalance would drive massive migration and risk fueling hatred and fundamentalism. The solution, he argued, was to lift poor nations out of misery by spreading democracy, good governance, human rights, and free-market economies, which he described as both a moral duty and a vital a world marked by volatility where conflicts have erupted across the Indo-Mediterranean, tensions in the Indo-Pacific escalate amid China's aggressive posture, and the persistent threat of Islamic extremism continues to challenge global stability, Berlusconi's speech now resonates with prophetic clarity. Nearly two decades after that historic address, Prime Minister Giorgia Meloni has at last crafted a strategic response aimed at addressing the very challenges Berlusconi warned of, warnings that until now successive Italian Prime Ministers and much of the global leadership had largely overlooked. Prime Minister Meloni's Piano Mattei is Italy's strategic framework for cooperation with Africa, focusing on five pillars: energy, water, agriculture, health, and education. Launched in early 2024 and rooted in 'partnership among equals,' it aims to tackle migration drivers and foster investment through public–private tools. She has successfully aligned the plan with the EU's Global Gateway, co-hosting a Rome summit with President Ursula von der Leyen in June 2025 where 11 agreements were signed. The initiative has positioned Italy as a key EU player in shaping Africa policy and development engagement, and Italy has taken the leadership of the EU's much lagging Africa outreach. Under Prime Minister Narendra Modi's leadership, India has doubled down on a Global South leadership agenda by shepherding the African Union's entry into the G20 at the New Delhi Leaders' Summit in September 2023, which elevated African representation in the forum's core deliberations. It has convened the Voice of Global South Summits (January 2023 and August 2024) to channel developing country priorities into global diplomacy. Looking ahead, New Delhi is set to host the Quad Leaders' Summit in 2025, positioning Indo Pacific security dialogues alongside development concerns of the Global South. India is also a central player in an expanded BRICS, with the 2025 leaders' meeting in Rio de Janeiro offering another platform where it engaged in dialogues on finance, development and South-South partnerships. Without directly mentioning it, both Italy and India seek to counter China's debt heavy Belt and Road Initiative (BRI) and its rising military influence in the global south, especially Africa, a young continent, rich in natural resources and full of future potential. While PM Meloni seeks to harness the might of the European Union, PM Modi uses India's centuries of goodwill, colonial era diaspora and soft power. Despite using different strategies both agree on the importance of Africa and the global south to the future of humanity. India and Italy are both firm champions of a more equal, value driven world, where trade wars, proxy wars, natural calamities and pandemics are especially taxing to the poor and the vulnerable. Italy's vision of an enlarged Mediterranean extending to the Horn of Africa aligns naturally with India's MAHASAGAR initiative (Mutual and Holistic Advancement for Security and Growth Across Regions), launched in March 2025 which starts at the Gulf of Aden. Building on its predecessor SAGAR (2015), which focused largely on the Indian Ocean Region, MAHASAGAR broadens India's engagement with the wider Global South, including East Africa, by emphasizing capacity building, sustainable blue-economy growth, trade, connectivity, and security cooperation. It has cemented India's status as the Indian Ocean's primary maritime security provider and a 'first responder' in crises. MAHASAGAR is designed to counter threats such as piracy, illegal fishing, and maritime terrorism while reinforcing India's commitment to a free and rules-based maritime order, reflecting its ambitions as a Global South leader in ocean the shared geography of the Indo-Mediterranean, Italy and India have much to gain by leveraging the synergies between their ambitious initiatives. The challenges they face are common, and both countries are signatories to the India-Middle East-Europe Economic Corridor (IMEC), a major trade route linking the Indo-Pacific with Europe and the United States through the Middle East. While IMEC, which brings together the US, EU, India, Italy, Germany, France, UAE, Saudi Arabia, Israel, and potentially Greece and Cyprus, will require time to develop its infrastructure, a dedicated Indo-Mediterranean corridor between Italy and India could serve as a vital interim upcoming entry into force of the India - European Free Trade Association (EFTA) Trade and Economic Partnership Agreement (TEPA) on 1st October 2025 underscores this need. Switzerland, the largest EFTA economy and demographically the largest member, is landlocked and heavily dependent on Italian ports for access to India. Experts and entrepreneurs point out the advantage of establishing a dedicatedItaly-India-Switzerland maritime trade corridor which would boost TEPA's implementation while laying the groundwork for IMEC's eventual operation. Just as Trieste could serve as India's gateway to Europe's industrial heartlands and Central and Eastern Europe as Europe's IMEC terminal, other Italian ports could become India's entry points into Switzerland and Lombardy, Italy's economic powerhouse. Above all, Italy's southern ports and the infrastructure projects planned under the Mattei Plan complement India's Africa-focused Mahasagar strategy. The strong personal rapport between the two prime ministers and their alignment on strategic objectives further strengthen this partnership. With the leadership of Prime Ministers Meloni and Modi, two cultural superpowers could very well be lighthouses to ships in today's storms and bring them to the shore. Senator Giulio Terzi di Sant'Agata is the President of the Italy-India Parliamentary friendship group, and Vas Shenoy is the Chief Representative for Italy of the Indian Chamber of Commerce (ICC).
India Today
8 minutes ago
- India Today
May consider dividends to citizens: Trump on tariff revenue disbursal plans
The day the 25 per cent US tariffs on Indian imports came into effect, President Donald Trump said he might consider extending the "dividends" earned through the levies imposed on America's trade partners to its citizens, news agency Reuters reported on the Trump tariff tirade, while most European Union member countries and the UK were hit with 15 per cent levies, Japan with 10 per cent, and South Korea with just 5 per cent, India saw a 25 per cent blanket rate imposed on its products imported by the US. The US cited exponentially high tariffs by India on American products behind its Trump imposed a 35 per cent duty on many goods from Canada, 50 per cent on Brazil, 39 per cent on Switzerland and 20 per cent on Taiwan. Notably, Trump has signed a new executive order that imposes fresh import tariffs on goods from 69 countries and the European Union, which will come into effect on August per the order, Syria tops the list of highest tariffs at 41 per cent, followed by Laos and Myanmar at 40 per cent, and Iraq and Serbia at 35 per cent. Other countries such as Libya and Algeria will now face a 30 per cent China, against whom Trump once ordered tariffs as high as a whopping 145 per cent, is still negotiating with the US, with American officials saying that they are looking at an imminent trade deal. "But it is not 100 per cent done," US Treasury Secretary Scott Bessent told CNBC move is part of Trump's push for what he describes as more "fair and reciprocal" trade relationships. The White House said that some countries had failed to meet US expectations during trade talks, leading to these new Trump's tariff move and the deadline, global stock markets witnessed a slump as investors panicked, fearing a global supply chain disruption and the outcome of their talks with who had grown accustomed to Trump's frequent trade threats may now be facing a reality check, as broad tariffs on numerous countries have taken effect just as the deadline to negotiate trade agreements with the US passed without resolution.- EndsTune InMust Watch
Time of India
8 minutes ago
- Time of India
Volvo shifts gears, to offer both EVs & ICE models in India
Volvo Cars will continue to introduce both electric and internal combustion engine (ICE) vehicles in India, pivoting its earlier strategy of going all-electric amid slow customer adoption of battery electric vehicles (BEVs). The Swedish luxury carmaker had last year said it will henceforth sell only electric vehicles in India in its bid to have an all-electric portfolio by the turn of the decade. Volvo's strategy mirrors those of other global car makers like Jaguar Land Rover, and Mercedes Benz who are revising plans to have an all-electric product range. Speaking to ET, Jyoti Malhotra, managing director at Volvo Cars India said, globally too while the company intends to go all electric, timelines have now been pushed beyond 2030. 'The adoption rate (of electric vehicles) is different in different countries. And even within the country (in India), it's different across states,' said Malhotra. He said government policies are crucial in deepening EV penetration in India, with states that have waived off road taxes seeing higher adoption rates among customers. 'We will continue to drive in electric cars and have a launch lined up later this year itself. But at the same time, we will continue to focus on ICE,' said Malhotra. EVs currently contribute about 25 per cent of Volvo's sales in India. The market for such eco-friendly luxury cars is however still small though it is growing, according to the company. 'About a year back, EVs had started losing steam. We are seeing some uptick in the segment in the last six months. But customer needs are different across regions,' said Malhotra. 'Home charging is extremely important for customer comfort when it comes to owning EVs. In cities, where there are high-rises, charging electric cars is challenging,' he said, adding Volvo is seeing stronger EV adoption in states like Kerala, Maharashtra, and Delhi where there are low-rises and state policies are conducive. He was speaking on the sidelines of the launch of the XC60 SUV model. Globally, Volvo does have plug-in hybrids in its portfolio, but Malhotra said the company will only consider launching them in India if the tax structures are more conducive. India currently levies a Goods and Services Tax (GST) rate of 5 per cent on EVs, and 43 per cent on hybrids. Overall, Malhotra said luxury car sales in India, which had been outpacing the broader car market in the last few years, slowed in the first half of 2025 as volatile stock markets, and mounting geopolitical tensions hit demand among the country's rich, aspirational buyers. He however added that Volvo is on track to meet its sales target for this calendar year though industry growth is likely to be muted. Per industry estimates, around 22,900 luxury cars were sold in the first half of 2025, a 1.8 per cent rise from a year earlier. Separately, Malhotra termed free trade agreements being inked or negotiated by the Indian government as a step in the right direction, which will help to grow the auto industry in the long run. 'The UK FTA has set a benchmark. While the one with the EU is still some time away, free trade agreements are good for the economy. India is seen as a market with growth potential. If any company were to invest in India today, they will only consider the scale available in the market here. With FTAs, the scale changes immediately as they open up access to many more markets globally,' he said, adding Volvo can also explore possibilities for expanding its footprint in India once the EU trade deal is finalised.
