Representative file image. , Photo Credit: Reuters
On Friday (August 29, 2025), the Indian rupee fell 0.65% to 88.09 against the US dollar, responding to the additional tariff imposed by the United States. Analysts said that domestic currency may move forward in the range of ₹ 89.5-90 per dollar in the coming weeks.
The currency dealers reacted two days after the US tariff before selling the currency.
On delay, Anindya Bernerjee, head of Kotak Securities currency and commodities, said the dealers were waiting to see if the Central Bank would be stepped into and volatility would be controlled. “Once he realized that the RBI did not do it, he started selling the money.” Indian currency depreciates when foreign currency traders sell and appreciate buying.
He said that the RBI would not have intervened because “when a business war happens, everything is a tool in the war.” Manesh Sharma, who was the head of research of objects and currencies in Anand Rathi’s shares and stock brokers, was of the same scene. “RBI also wants the money to be weakened so that the impact of high tariffs can be offset, so that the export can be made more competitive,” Mr. Sharma said.
A depreciation currency naturally makes exports cheaper, as the value of the US purchasing goods for one dollar from India will become cheaper. More increase in exports on imports can also accelerate the depreciation speed.
The two analysts said that the Federal Market Committee meeting could reach ₹ 89.5 to ₹ 90 to $ 90 before the meeting of the Federal Market Committee, although the accurate forecast of the number of days or weeks could be difficult in uncertain conditions.
He said when and to what extent the forecast would intervene to curb the instability of the RBI exchange rate. They hope that if the rupee crosses Rup 89.5 against the green back, the central bank may move.
Instability comes on a backdrop of a appreciation a few months ago, when analysts estimated that the rupee would be in an area of -84–86 per dollar in the first half of 2026. Analysts warned of high levels of US dollar response, as as the last week in the last week of May 2025.
Published – August 29, 2025 04:26 pm IST
