Intraday, it fell to a low of 86.0475, its lowest level since June 25. The rupee recovered some grounds, likely because of intervention by the Reserve Bank of India, and closed at 85.9850 against the dollar compared to Friday’s close of 85.80, dealers said.
“Dollar index rose and kept the rupee lower for the entire day while Asian currencies were slightly weaker. The central bank was present to protect the rupee while FPIs who were sellers of equity on Friday were dollar buyers,” said Anil Kumar Bhansali head of treasury and executive director, Finrex Treasury Advisors LLP
Given the tariffs-related uncertainty and as India is yet to receive communication from the US on tariffs, the rupee is expected to trade with weak bias, said Dilip Parmar, foreign exchange research analyst at HDFC Securities. He expects rupee to test 86.30 level in the coming sessions.
A team consisting of India’s commerce ministry officials are in Washington to discuss the proposed bilateral trade agreement.
On Saturday, US President Donald Trump announced a 30% tariff on imports from Mexico and the European Union starting on August 1.
