Overview

• The Monetary Policy Committee left the repo rate unchanged in its August review, surprising traders who expected a cut.
• The rupee opened at 87.72 per dollar on August 6 and traded within a narrow band as the RBI sold dollars through state-run banks.
• India’s foreign exchange reserves fell by $9.3 billion to $688.9 billion as of August 1 after the central bank used reserves to support the currency.
• President Trump renewed threats to raise US tariffs on Indian goods over New Delhi’s purchases of Russian oil, intensifying trade uncertainty.
• Brent crude futures eased below $68 per barrel after OPEC+ approved another large output hike for September, relieving some oil-driven pressure on the rupee.