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The rupee shut down 12 money at 87.68 (provisional) against the US dollar on Tuesday (August 26, 2025), which kept an eye on weak domestic markets, when the US issued a draft notice on a plan to implement an additional 25% tariff on Indian products.
Foreign currency traders said that the rupee lost the rupee as anxiety on the Indian goods prescribed by 25% on Indian goods to be effective from August 27, increased the demand for strong dollars from importers.
In the Interbank Foreign Exchange Market, the rupee opened at 87.74, then the initial high of 87.63 and the US -87.80 Intrade lower against the US dollar.
The domestic unit settled at 87.68 (provisional), declining 12 money in its previous bandh.
On Monday, the rupee received an initial benefit to reduce 4 money lower at 87.56 against the US dollar.
US President Donald Trump said, “US President Donald Trump said,” US President Donald Trump said that 50 percent of tariffs (including 25 percent of additional tariffs) in India will start from August 27, and said Anuj Chaudhary.
The US has released a draft notice detailing plan to implement an additional 25% tariff on Indian products, as declared by President Donald Trump earlier.
The 50% tariff on Indian goods entering the United States will be effective from August 27, which will severely affect many labor-intensive export areas, such as shrimp, apparel, leather and gems and amp; Jewelry.
High additional import duties will affect more than half of 86 billion Indian exports in the US, while the remaining items, including pharmaceuticals, electronics, and petroleum products, will continue to give exemption from levy.
However, after the benefit in the last four sessions, the rupee slashed by softening the prices of crude oil.
Global Oil Benchmark Brent crude was trading 1.48% less at $ 67.78 per barrel in futures trade.
Meanwhile, the US dollar fired US Federal Reserve Governor Lisa Cook in early Tuesday.
The dollar index, which detects the strength of greenback against a basket of six currencies, fell 0.05% to 98.37.
Chaudhary said, “We hope that the rupee will trade with negative bias on tariff uncertainty and decline in domestic equities. FII outflow can also be weighed on rupee. However, softening the prices of crude oil from US dollar and high levels can support the domestic currency,” said Chaudhary.
Traders can take signs from the US ordered from the United States and consumer confidence data. He said that USD/INR spot price is expected to trade within the range of 87.50 to 88.
On the domestic equity market front, Sensx arranged 849.37 points at 80,786.54, while the Nifty fell 255.70 points, to 24,712.05.
According to exchange data, foreign institutional investors on Monday launched an equity of Rs 2,466.24 crore.
Published – August 26, 2025 04:17 pm IST