Overview

• The currency finished at ₹87.43 per dollar, its weakest close in more than five months, after dropping 61 paise in a single session.
• Heavy month-end demand for dollars from importers and aggressive selling by foreign portfolio investors depleted market liquidity and accentuated the decline.
• President Trump’s announcement of a 25% tariff on Indian exports taking effect August 1 heightened concerns over trade relations and contributed to the rupee’s slide.
• Rising Brent crude prices have increased India’s import bill, adding further strain to the currency.
• Market participants anticipate the Reserve Bank of India to step in around the 88-per-dollar threshold to curb excessive volatility and are watching the upcoming US Federal Reserve policy decision for further direction.