NEW DELHI– The Indian rupee opened stronger on Monday, even as markets brace for a proposed 25 percent U.S. tariff on Indian goods announced by President Donald Trump, set to take effect August 27.
Analysts said the rupee’s gains were likely supported by optimism over the upcoming U.S.–Russia talks on August 15, which could help resolve the Russia–Ukraine conflict and potentially lead to the removal of additional tariffs on India.
The currency opened 13 paise higher at 87.53 against the U.S. dollar, compared with Friday’s close of 87.66. Traders expect the near-term range to be between 87.25 and 87.80.
The rupee had been projected to start the day at around 87.51, with markets awaiting key inflation data—both domestic and U.S.—for further direction. India’s CPI data is due August 12, while WPI data will be released August 14.
If implemented, the additional tariffs are expected to weigh on the rupee in the short term by curbing export revenues, prompting capital outflows, and adding inflationary pressure. The measures are expected to impact sectors including textiles, leather, and seafood.
India has strongly criticized the tariff plan, calling it “unfair and unreasonable.” The U.S. has proposed a 50 percent rate for India—the steepest among targeted countries—compared to 30 percent for China and 15 percent for Turkey, even though all three import Russian oil.
Meanwhile, Brent crude prices fell to $66.25 per barrel in Asian trade Monday, extending last week’s sharp declines. Traders expect that U.S.–Russia negotiations could ease geopolitical tensions and lift some pressure on energy markets.
China’s July economic data, including weaker inflation figures, suggested a sluggish recovery, keeping oil market sentiment cautious on future demand.
In Indian equity markets, foreign institutional investor (FII) selling persisted last week, reflecting broader risk aversion toward emerging markets. However, steady buying by domestic institutional investors (DIIs) helped offset losses. (Source: IANS)
