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The Print
3 hours ago
- Business
- The Print
Rupee slides steepest in over 3 years, ends 89 paise down at all-time low of 87.80 Vs dollar
At the interbank foreign exchange, the domestic unit opened at 87.10 and touched an intra-day low of 87.05 against the greenback. Forex traders said month-end dollar demand from importers and sustained foreign fund outflows also weighed on the local unit. Mumbai, Jul 30 (PTI) The rupee plunged 89 paise, logging its steepest single-day fall in over three years, and closed at an all-time low of 87.80 against the US dollar on Wednesday after America announced a sweeping 25 per cent tariff on Indian imports in the absence of a trade deal ahead of the August 1 deadline. At the end of Wednesday's trading session, the local unit settled at a fresh all-time low of 87.80, down 89 paise over its previous closing price. This was rupee's steepest single-day fall since February 24, 2022 when it had lost 99 paise against the dollar. On Tuesday, the rupee declined to an over four-month low and closed 21 paise weaker at 86.91 against the US dollar. Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, said, 'We expect the rupee to slide further amid uncertainty over the trade deal between India and the US. Rising global oil prices and foreign outflows may also keep the rupee under the leash.' Moreover, investors remained on the sidelines ahead of the US Federal Reserve and Bank of Japan's monetary policy decision this week. 'Traders may take cues from Q2, 2025 GDP, ADP non-farm employment and pending home sales data from the US. Investors may remain cautious ahead of the US FOMC meeting and Bank of Japan's monetary policy decision,' Choudhary said, adding that USDINR spot price is expected to trade in the range of 87-87.90. Dilip Parmar, Senior Research Analyst, HDFC Securities, attributed the sharp depreciation in rupee to increased month-end dollar demand and outflows from foreign funds. 'Adding to the negative sentiment, comments from US President Trump, suggesting that India could face tariffs of 20 to 25 per cent, further weighed down the rupee,' Parmar said, adding, 'the breaching of the psychological level of 87, coupled with a technical breakout, spurred greater dollar demand from importers and triggered short covering.' US President Donald Trump on Wednesday announced the imposition of a 25 per cent tariff on all goods coming from India starting August 1, plus an unspecified penalty for buying military equipment and crude oil from Russia. In the domestic equity market, the 30-share BSE Sensex advanced 143.91 points, or 0.18 per cent, to close at 81,481.86, while the Nifty rose 33.95 points, or 0.14 per cent, to settle at 24,855.05. Foreign institutional investors (FIIs) offloaded equities worth Rs 850.04 crore on a net basis on Wednesday, according to exchange data. A US team will visit India on August 25 for the next round of negotiations for the proposed bilateral trade agreement between the two countries. Though the team is coming at the end of next month, both sides remain engaged to iron out differences for an interim trade deal before August 1, which marks the end of the suspension period of tariffs imposed by Trump on dozens of countries, including India. The prospects for an interim deal may look dim as US Trade Representative Jamieson Greer has said more negotiations will be needed with India on a trade pact. Indian exporters face an additional duty of 16 per cent — on top of the existing 10 per cent. They said in the absence of clarity on the penalty's scope, Indian exporters and their US buyers are unable to accurately calculate landed costs or plan how to absorb the elevated tariff burden. PTI DRR HVA This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
The Hindu
8 hours ago
- Business
- The Hindu
Rupee slumps 52 paise to close at 87.43 against U.S. dollar
The rupee depreciated 52 paise to close at 87.43 (provisional) against the U.S. dollar on Wednesday (July 30, 2025), on uncertainty over an India-U.S. trade deal after U.S. President Donald Trump hinted at tariff rates of around 20-25% ahead of the deadline of August 1, 2025. Forex traders said month-end dollar demand from importers and sustained foreign fund outflows weighed on the local unit. At the interbank foreign exchange, the domestic unit opened at 87.10 against the greenback and touched an intraday low of 87.05 against the greenback. At the end of Wednesday's (July 30, 2025) trading session, the local unit settled at 87.43 (provisional), down 52 paise over its previous closing price. On Tuesday (July 29, 2025), the rupee declined to an over four-month low and closed 21 paise weaker at 86.91 against the US dollar. 'Indian rupee tanked sharply on uncertainty over India-US trade deal after US President Donald Trump hinted at tariff rates of around 20-25% ahead of the deadline of August 1,' Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, said. Mr. Choudhary further said, 'We expect the rupee to slide further amid uncertainty over the trade deal between India and the US. Rising global oil prices and foreign outflows may also keep the rupee under the leash.' Moreover, investors remained on the sidelines ahead of the US Federal Reserve and Bank of Japan's monetary policy decision this week. 'Traders may take cues from Q2, 2025 GDP, ADP non-farm employment and pending home sales data from the U.S. Investors may remain cautious ahead of the US FOMC meeting and Bank of Japan's monetary policy decision,' Mr. Choudhary said, adding that the USD-INR spot price is expected to trade in the range of 87-87.90. In the domestic equity market, the 30-share BSE Sensex advanced 143.91 points, or 0.18%, to close at 81,481.86, while the Nifty rose 33.95 points, or 0.14%, to settle at 24,855.05. Foreign institutional investors (FIIs) offloaded equities worth ₹4,636.60 crore on a net basis on Tuesday (July 29, 2025), according to exchange data. According to traders, the lingering trade deal between India and the U.S. may continue to weigh on the rupee. 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. Meanwhile, U.S. President Donald Trump has said the trade deal with India is not finalised, as he stressed that India imposes more tariffs than almost any other country. Asked if the deal with India has been finalised, he said, 'No, it's not.' He was also asked about reports that India is preparing to face higher US tariffs at 20-25%, to which he replied, 'I think so'. U.S. team will visit India on August 25 for the next round of negotiations for the proposed bilateral trade agreement between the two countries. Though the team is coming at the end of next month, both sides remain engaged to iron out differences for an interim trade deal before August 1, which marks the end of the suspension period of tariffs imposed by US President Donald Trump on dozens of countries, including India. The prospects for an interim deal may look dim, as U.S. Trade Representative Jamieson Greer has said more negotiations will be needed with India on a trade pact. However, officials are not ruling out the possibility of a last-minute breakthrough. Indian exporters may face an additional duty of 16 per cent -- on top of the existing 10%, if the August 1 deadline is not extended further or an interim deal is not reached between the two countries.
Business Recorder
8 hours ago
- Business
- Business Recorder
Rupee continues to gain against US dollar
Rupee's Performance Against US Dollar Since 04 March 2025 The Pakistani rupee maintained its upward trajectory against the US dollar, appreciating 0.04% during trading in the inter-bank market on Wednesday. At close, the currency settled at 282.95, a gain of Re0.1. On Tuesday, the currency settled at 283.05. Pakistan's crackdown on black market dollar trading has strengthened the rupee, but traders say under-the-counter deals have swiftly shifted to smartphones and home deliveries instead. Many unlicensed exchange shops have been shut since July 22, when the military spy agency summoned representatives of the sector to explain the US dollar's rising cost in the open market. Soon after, raids were carried out by the Federal Investigation Agency, which tackles financial crime and smuggling. Since the crackdown began, the rupee has rebounded from a sharp fall against the dollar earlier in July. Internationally, the euro steadied near its lowest in a month on Wednesday, nursing steep losses this week as investors counted the cost of the US-EU trade pact and looked ahead to policy meetings from the Federal Reserve and the Bank of Japan. US and Chinese officials agreed to seek an extension of their 90-day tariff truce on Tuesday, following two days of what both sides described as constructive talks in Stockholm. No major breakthroughs were announced, and US officials said it was up to President Donald Trump to decide whether to extend a truce that expires on August 12. The euro was 0.12% higher at $1.1558 in early trading after dropping for the first two days of the week and hitting a one-month low of $1.15185 on Tuesday. The single currency has benefited this year from the dollar losing its lustre due to Trump's erratic trade policies, prompting investors to look for alternatives. The Japanese yen firmed a bit to 148.20 per dollar. That left the dollar index, which measures the US currency against six others, at 98.815, hovering near a one-month high. The index is set to record its first month of gains this year. Oil prices, a key indicator of currency parity, ticked up in early trading on Wednesday after rising more than 3% in the previous session as potential supply shortages came into focus after US President Donald Trump gave Moscow an abbreviated deadline toward ending the war in Ukraine. Brent crude futures rose 14 cents, or 0.19%, to $72.65 a barrel by 0048 GMT while US West Texas Intermediate crude climbed 2 cents, or 0.03%, to $69.23 a barrel. Both contracts had settled at their highest since June 20 on Tuesday.
News18
10 hours ago
- Business
- News18
Rupee slumps 52 paise to close at 87.43 against US dollar
Mumbai, Jul 30 (PTI) The rupee depreciated 52 paise to close at 87.43 (provisional) against the US dollar on Wednesday, on uncertainty over India-US trade deal after US President Donald Trump hinted at tariff rates of around 20-25 per cent ahead of the deadline of August 1. Forex traders said month-end dollar demand from importers and sustained foreign fund outflows weighed on the local unit. At the interbank foreign exchange, the domestic unit opened at 87.10 against the greenback and touched an intra-day low of 87.05 against the greenback. At the end of Wednesday's trading session, the local unit settled at 87.43 (provisional), down 52 paise over its previous closing price. On Tuesday, the rupee declined to an over four-month low and closed 21 paise weaker at 86.91 against the US dollar. 'Indian rupee tanked sharply on uncertainty over India-US trade deal after US President Donald Trump hinted at tariff rates of around 20-25 per cent ahead of the deadline of August 1," Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, said. Choudhary further said, 'We expect the rupee to slide further amid uncertainty over the trade deal between India and the US. Rising global oil prices and foreign outflows may also keep the rupee under the leash." Moreover, investors remained on the sidelines ahead of the US Federal Reserve and Bank of Japan's monetary policy decision this week. 'Traders may take cues from Q2, 2025 GDP, ADP non-farm employment and pending home sales data from the US. Investors may remain cautious ahead of the US FOMC meeting and Bank of Japan's monetary policy decision," Choudhary said, adding that USDINR spot price is expected to trade in the range of 87-87.90. In the domestic equity market, the 30-share BSE Sensex advanced 143.91 points, or 0.18 per cent, to close at 81,481.86, while the Nifty rose 33.95 points, or 0.14 per cent, to settle at 24,855.05. Foreign institutional investors (FIIs) offloaded equities worth Rs 4,636.60 crore on a net basis on Tuesday, according to exchange data. According to traders, the lingering trade deal between India and the US may continue to weigh on the rupee. 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. Meanwhile, US President Donald Trump has said the trade deal with India is not finalised, as he stressed that India imposes more tariffs than almost any other country. Asked if the deal with India has been finalised, he said, 'No, it's not". He was also asked about reports that India is preparing to face higher US tariffs at 20-25 per cent, to which he replied, 'I think so". A US team will visit India on August 25 for the next round of negotiations for the proposed bilateral trade agreement between the two countries. Though the team is coming at the end of next month, both sides remain engaged to iron out differences for an interim trade deal before August 1, which marks the end of the suspension period of tariffs imposed by US President Donald Trump on dozens of countries, including India. The prospects for an interim deal may look dim as US Trade Representative Jamieson Greer has said more negotiations will be needed with India on a trade pact. However, officials are not ruling out the possibility of a last-minute breakthrough. Indian exporters may face an additional duty of 16 per cent — on top of the existing 10 per cent, if the August 1 deadline is not extended further or an interim deal is not reached between the two countries. PTI DRR TRB view comments First Published: July 30, 2025, 16:00 IST News agency-feeds Rupee slumps 52 paise to close at 87.43 against US dollar 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.
The Print
11 hours ago
- Business
- The Print
Rupee hits over four-month low; ends 21 paise down at 86.91 against US dollar
Moreover, investors remained on the sidelines ahead of the US Federal Reserve and Bank of Japan's monetary policy decision this week. Forex traders said month-end dollar demand from Oil Marketing Companies (OMCs) and importers further pressurised the rupee. Mumbai, Jul 29 (PTI) The rupee declined to over four-month low level and closed 21 paise weaker at 86.91 against the US dollar on Tuesday, weighed down by a jump in the American currency index and a surge in crude oil prices. At the interbank foreign exchange, the domestic unit opened at 86.76 and touched an intra-day low of 86.92 against the greenback, surpassing the closing level of March 17 when the unit had ended at 86.81 versus dollar. At the end of Tuesday's trading session, the local unit settled at 86.91, down 21 paise over its previous closing price. On Monday, the rupee had settled at 86.70 against the dollar. 'The Indian rupee fell by nearly 20 paise on a jump in the US dollar index and a surge in crude oil prices. The US dollar rallied on optimism over the US-EU trade deal. However, a bounce back in the domestic equities after falling sharply over the past three sessions cushioned the downside,' said Anuj Choudhary – Research Analyst at Mirae Asset Sharekhan. Forex traders said investors traded cautiously awaiting the outcome of India-US trade talks ahead of the August 1 deadline. 'The lingering trade deal between India and the US may continue to weigh on the rupee. Rising crude oil prices and foreign outflows may also pressurise the rupee. FIIs have offloaded stocks worth nearly Rs 37,000 crore till date, the biggest selling since February 2025,' Choudhary added. 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. 'Month-end dollar demand from OMCs and importers may further pressurise the rupee,' Choudhary said, adding, 'investors may remain cautious ahead of the US Federal Reserve and Bank of Japan's monetary policy decision this week.' Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose marginally by 0.13 per cent to 98.75. Brent crude, the global oil benchmark, went up by 0.46 per cent to USD 70.36 per barrel in futures trade, as developing trade agreements eased tariff concerns and boosted future energy demands. In the domestic equity market, the 30-share BSE Sensex advanced 446.93 points, or 0.55 per cent, to close at 81,337.95, while the Nifty rose 140.20 points, or 0.57 per cent, to settle at 24,821.10. Foreign institutional investors (FIIs) offloaded equities worth Rs 4,636.60 crore on a net basis on Tuesday, according to exchange data. Dilip Parmar, Research Analyst, HDFC Securities, said the rupee's depreciation was primarily driven by sustained selling by foreign funds, coupled with a recovery in the US dollar and an increase in crude oil prices. 'Market participants are now closely monitoring the upcoming FOMC monetary policy meeting and the deadline for tariff negotiations, as these events are expected to provide further direction for the rupee. For the USD/INR pair, the immediate support level is seen at 86.30, while resistance is seen at 87.05,' Parmar said. PTI DRR HVA This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
