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Rupee shut down 13 money at 87.71 (provisional) against the US dollar on Friday (August 8, 2025), weighed by weak domestic equities as the Indo-American trade deal continues to uncertain domestic market sentiments.
Foreign currency traders said that the rupee is trading in a narrow range amidst extended weakness in domestic equity and the outflow of foreign funds can also weigh on the domestic currency.
In addition, President Donald Trump’s aggressive step, which kicks in 21 days, threatens to increase the total duties on selected Indian exports to 50% – the highest tax on them globally to our imports, further carried forward market sentiments.
In the interbank foreign currency, the domestic unit opened at 87.56 and went to the range of 87.52–87.75 during the day before settling at 87.71 (provisional), below 13 money than its previous bandh.
On Thursday, the rupee set up 14 money at 87.58 against the US dollar.
“The Indian rupee on Friday dropped a recovery on a recovery in the US dollar and weak domestic equity. The uncertainty of the trade war also put pressure on the rupee. However, the softening of crude oil prices stopped a sharp decline,” said Anuj Chaudhary – Research Analysts, Commodities and currencies, Mirai Asset Sharekhan.
Mr. Chaudhary further mentioned, “There is a possibility of trade with a negative bias between the ongoing trade war between India and the US as Mr. Trump increased the tariff on Indian imports by 50%.
“Extended weakness in domestic equity and FII outflow can also weigh on domestic currency. However, the overall weakness in the US dollar can support a low level of rupee between weakening of the labor market and increased rate cuts.”
On 6 August, the United States announced an additional 25% tariff on all Indian imports, at the top of the current 25% duty, the total duty came into effect from 50% to 27 August.
Meanwhile, Brent crude prices rose 0.60% to $ 66.83 per barrel in futures trade.
The dollar index, which detects the strength of greenback against a basket of six currencies, fell 0.16% to 98.24.
On the domestic equity market front, Sensex fell to 765.47 points at 79,857.79, declining the Nifty 232.85 points to fall to 24,363.30.
According to exchange data, foreign institutional investors (FII) on Thursday launched a price of 4,997.19 crores.
Meanwhile, President Trump has dismissed the possibility of trade talks with India until the tariff issue is resolved.
“No, not until we solve it,” Mr. Trump on Thursday in response to a question in the oval office said if he expects an increase in business talks with India as he has announced a 50% tariff on the country.
Last week, Mr. Trump announced 25% mutual tariff on India which came into force from 7 August.
The US President also signed an executive order by slapping India an additional 25% levy for the purchase of New Delhi, among the US, among the US, among the US, among the most dutes.
The additional 25% duty will be applicable after 21 days or 27 August.
Published – August 08, 2025 05:29 pm IST
