Rupee falls 5 paise to close at 86.36 against US dollar
Forex traders said, all eyes are now on the outcome of India-U.S. trade talks, especially as the August 1 deadline for potential tariffs on Indian exports draws near.
The weakness in the American currency and softening of crude oil prices supported the rupee at lower levels, while foreign fund outflows and a negative trend in domestic equities weighed on the local unit and restricted the upside.
At the interbank foreign exchange, the domestic unit opened at 86.26 against the greenback and touched an intra-day high of 86.22 and a low of 86.41 against the greenback.
At the end of Tuesday's trading session, the local unit settled at 86.36 (provisional), down 5 paise over its previous closing price.
On Monday, the rupee depreciated 15 paise to close at 86.31 against the US dollar.
"We expect the rupee to trade with a slight negative bias on trade deal talks. However, weakness in the American currency and softening of crude oil prices may support the rupee at lower levels," Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, said.
Meanwhile, the U.S. team will visit India in August for the next round of negotiations for the proposed bilateral trade agreement between the two countries, an official said on Monday.
India and the U.S. teams concluded the fifth round of talks for the agreement last week in Washington.
These deliberations are important as both sides are looking at finalising an interim trade deal before August 1, which marks the end of the suspension period of Trump tariffs imposed on dozens of countries, including India (26 per cent).
If the discussions fail or get delayed, Indian exporters could face fresh pressure -- adding to the rupee's challenges. However, if a deal is reached, it could offer a much-needed breather. Until then, the uncertainty is likely to keep market participants cautious.
"Traders may remain cautious ahead of PMI and durable goods orders data from the US this week," Choudhary said, adding that USD-INR spot price is expected to trade in a range of 86.10 to 86.65.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.03 per cent to 97.82.
Brent crude, the global oil benchmark, fell 0.94 per cent to USD 68.56 per barrel in futures trade.
In the domestic equity market, the 30-share BSE Sensex declined 13.53 points, or 0.02 per cent, to close at 82,186.81, while the Nifty fell 29.80 points, or 0.12 per cent, to settle at 25,060.90.
Foreign institutional investors (FIIs) offloaded equities worth ₹1,681.23 crore on a net basis on Monday, according to exchange data.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
29 minutes ago
- Mint
NASA Says Thousands of Employees Set to Resign from Space Agency
(Bloomberg) -- NASA will lose roughly 3,870 employees through a voluntary resignation program, part of a broad push from President Donald Trump's administration to reduce the federal workforce. The numbers are subject to change as NASA reviews applications, including if an employee withdraws from the program or a resignation isn't approved, the US space agency said in a statement on Friday. 'Safety remains a top priority for our agency as we balance the need to become a more streamlined and more efficient organization and work to ensure we remain fully capable of pursuing a Golden Era of exploration and innovation, including to the Moon and Mars,' NASA said. NASA has offered employees two separate opportunities in 2025 to leave through the government's Deferred Resignation Program. The agency said its expected remaining civil servant workforce would be about 14,000 people, following both resignation programs, as well as normal attrition of about 500 people over the same time period. The first round came during the start of the Trump administration when federal workers received emails offering them the opportunity to take a buyout, an effort spearheaded by the Elon Musk-helmed Department of Government Efficiency. About 870 people, or 4.8% of the NASA workforce, took the offer then. NASA initiated its own second round of deferred resignation beginning in early June, with a deadline to opt in by July 25. About 3,000 personnel, or 16.4% of the workforce, took it up, the agency said Friday. Executives at the space agency, who have been working to reduce headcount to comply with the Trump administration's goal of shrinking the federal workforce, have spearheaded deferred resignation as a way to avoid layoffs. 'The reason we are doing this is to minimize any involuntary workforce reductions in the future,' NASA's former acting administrator Janet Petro said during an agency town hall on June 25, according to an audio recording obtained by Bloomberg. 'That is our whole goal, minimizing that.' NASA had sought a 'blanket waiver' in February to save all of the agency's probationary employees from layoffs. The prospect of a mass exodus of employees from NASA has raised alarm bells within the industry and at the agency, with some experts arguing that the the cuts will cause NASA to lose some of its best talent. In a letter to newly appointed NASA interim administrator Sean Duffy titled 'The Voyager Declaration,' hundreds of former and current employees warned Duffy, who is also the head of the Transportation Department, that workforce reductions could jeopardize the safety and efficiency of operations. 'Thousands of NASA civil servant employees have already been terminated, resigned or retired early, taking with them highly specialized, irreplaceable knowledge crucial to carrying out NASA's mission,' they wrote in the letter to Duffy. More stories like this are available on
India.com
29 minutes ago
- India.com
Deep As Ocean: PM Modi, Muizzu Affirm Centuries-Old Maldives-India Relation Amidst Reset
New Delhi: In a powerful symbol of renewed cooperation, Prime Minister Narendra Modi and Maldivian President Mohamed Muizzu reaffirmed the enduring bond between India and the Maldives during a state banquet in Malé on Friday, celebrating 60 years of diplomatic relations. During the banquet, hosted in PM Modi's honour, President Muizzu reflected on the shared history between the two nations. 'This year marks 60 years of diplomatic relations between the Maldives and India, a milestone that reflects not only our shared history but also the depth and resilience of our partnership,' he said. 'Yet, the bond between our people predates diplomatic formalities. For centuries, the Indian Ocean has witnessed our exchanges as traders, travellers, and neighbours. Today, it continues to unite us with ties that no tide can break.' The banquet marked a significant moment in bilateral diplomacy, with PM Modi becoming the first state guest of President Muizzu's tenure. Modi was also present as the Guest of Honour at the Maldives' 60th Independence Day celebrations, an honour he described as 'deeply meaningful.' Addressing the gathering, Prime Minister Modi said, 'Maldives holds a special place in India's 'Neighbourhood First' policy. This relationship is not just about diplomacy; it's a bond of deep affinity.' He noted that this year also marks the 60th anniversary of India-Maldives diplomatic relations, a symbolic and timely coincidence. Modi emphasised the historical and cultural links that continue to define the India-Maldives relationship. 'Our shared heritage is as old as the monsoon and as sweet as Addu Bondi,' he said, drawing a cultural connection. 'Several words in Dhivehi have come from Indian languages. Our tastes, though different, are remarkably similar.' Highlighting the growing people-to-people ties, Modi shared that the 1 millionth tourist to the Maldives this year was an Indian, underscoring the rising engagement between the citizens of both nations. President Muizzu praised Modi's leadership and congratulated him for becoming India's second-longest-serving Prime Minister. He also thanked the Indian government for its continued support in the Maldives' economic and development journey. 'India has been a true partner and co-passenger on every turn of the Maldives' development path,' Muizzu said, acknowledging India's support in infrastructure, capacity building, and regional security. Reaffirming the Maldives' commitment to building a dynamic, inclusive economy and ensuring regional peace, President Muizzu said India's role is pivotal in realising those aspirations. PM Modi echoed that sentiment. 'Our relationship thrives on goodwill and mutual trust,' he said. 'We are colleagues in the Global South. Today, we have reiterated our commitment to a bright future together, in trade, security, and sustainable development.' The official banquet was attended by top dignitaries from both nations, including Maldivian Vice President Uz Hussain Mohamed Latheef, Speaker of the People's Majlis Abdul Raheem Abdulla, Special Envoy Mohamed Waheed Hassan, and India's External Affairs Minister S. Jaishankar, along with senior officials from both governments. This visit marks Prime Minister Modi's first trip to the Maldives since beginning his third term in office.
Hans India
29 minutes ago
- Hans India
Sridhar urges Taiwanese to invest in TG's booming textile sector
Hyderabad: Telangana's Industries and IT Minister, D Sridhar Babu, has extended a cordial invitation to Taiwanese industrialists, urging them to invest in the state's burgeoning textile sector and become integral stakeholders in the 'Rising Telangana' narrative. Highlighting the abundant opportunities available in Telangana compared to other Indian states, the Minister underscored the state's rapid emergence as a formidable player in the textile industry. On Friday, a high-level Taiwanese textile delegation, comprising 11 members and led by Justin Huang, President of the Taiwan Textile Federation (TTF), paid a courtesy visit to the Minister at Dr. B.R. Ambedkar Telangana Secretariat. 'Within a short span, Telangana has made significant strides in the textile sector, positioning itself on par with other leading states,' the Minister stated. He noted that the Gross State Value Added (GSVA) from industries for 2024-25 stands at Rs 2.77 lakh crore, with textiles playing a key role. 'Telangana produces some of the finest quality cotton in India,' he added. Sridhar Babu emphasised that the Kakatiya Mega Textile Park (KMTP), developed with special focus by the state government, has become a 'game-changer.' He explained that KMTP offers integrated, world-class infrastructure — from ginning, spinning, weaving, and processing to garmenting — all in one place. 'Leading companies like Youngone, Kitex, and Ganesha Ecosphere have already invested here,' he confirmed. The park is strategically connected to the Hyderabad–Nagpur–Vijayawada Industrial Corridor and benefits from excellent logistics and transport infrastructure. He pointed out vast opportunities for investment in areas like functional textiles, eco-friendly dyeing, and textile recycling. The Minister also assured the visiting delegation of the Telangana Government's commitment to driving industrial growth through global partnerships. 'We offer customised land parcels, plug-and-play facilities, a skilled workforce, effective leadership, a stable government, and strategic geographic advantage,' he stated. He further noted that sectors such as technical textiles, ESDM (Electronics System Design & Manufacturing), sustainable manufacturing, innovation, and R&D are ideal for collaboration with Taiwanese enterprises. Minister Sridhar Babu also proposed that, should Taiwanese investors come forward, the government would explore setting up a dedicated Telangana–Taiwan Manufacturing Zone and exclusive Textile Clusters. He reaffirmed Telangana's readiness to work closely with the Taiwan Textile Federation for the sector's growth.
