Rupee falls 11p to 87.29 against US dollar
What's the story
The Indian rupee (INR) fell by 11 paise to 87.29 against the US dollar in early trade today. The decline was mainly due to continued foreign fund outflows and concerns over trade tariffs. However, forex traders noted that a weaker dollar index and falling crude oil prices provided some support for the rupee at lower levels.
Market trends
Opening at 87.21 mark
In the interbank foreign exchange market, the rupee opened at 87.21 and fell to an early low of 87.29 against the US dollar, marking a decline of 11 paise from its previous close. The Indian rupee had closed at 87.18 against the American currency on Friday. Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, said rupee is expected to trade between 87-87.50 levels today.
External factors
Trump's steep duties on imports from several countries
US President Donald Trump has proposed steep duties on 70 countries, adding uncertainty over trade tariffs. Meanwhile, Brent crude prices fell by 0.26% to $69.49 per barrel in futures trade as OPEC+ agreed to a production hike for September this year. Concerns over a slowing US economy and trade tariffs also weighed on the currency's performance today.
Market shifts
Dollar index fell by 0.40%
The dollar index, which measures the greenback's strength against a basket of six currencies, fell by 0.40% to 98.74. Meanwhile, the resignation of a US FED Governor has given President Trump an opportunity to influence the Central Bank sooner than expected. This development could further impact currency markets globally as traders heavily bet on a potential FED rate cut in September.