Overview

• The rupee weakened by 22 paise to 87.78 against the dollar in early Tuesday trade after the U.S. issued a draft notice outlining an additional 25% tariff on Indian goods slated for August 27.
• On Monday, the currency’s early gain to 87.34 reversed to a close at 87.56 as a firmer dollar and a rebound in crude prices weighed on sentiment.
• Market participants say the tariff timing and forthcoming U.S. data ahead of the Federal Reserve’s September 17 meeting will guide near‑term direction.
• The RBI is viewed as actively curbing excessive depreciation, with foreign exchange reserves at about $695.1 billion as of the week ended August 15.
• The dollar index hovered near 98.38 on Tuesday, and strategists flagged the 87.80 level as an area where the central bank has often checked further rupee weakness.