Rupee advances even as tariff rift continues; opens higher at 87.55/$

Indian Rupee today: The domestic currency opened 15 paise higher at 87.55 against the dollar on Friday, according to Bloomberg

The Indian Rupee posted gains on Friday, shrugging off any major impact from tariff-related concerns, even as the trade rift between India and the US continued.

 

The domestic currency opened 15 paise higher at 87.55 against the dollar on Friday, according to Bloomberg. The local unit has depreciated 2.39 per cent so far this year. The rupee has depreciated by 2.45 per cent in the current financial year, whereas it has witnessed 2.33 per cent depreciation in the current calendar year.

 

The Indian rupee remained steady between 87.66 to 87.77 on Thursday as the Reserve Bank of India (RBI) protected one end while global funds bought dollars at the other end, Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP, said. "The Indian rupee today is under pressure but remains steadied by central bank intervention and sectoral dynamics in the Indian economy."

 

The currencies' term trajectory will be influenced by ongoing trade negotiations, global economic conditions and domestic monetary policy decisions, Bhansali said.  

 

Meanwhile, US President Donald Trump ruled out any possibility of trade talks with India amid the ongoing tariff dispute. The US had already announced a 25 per cent tariff on Indian imports, set to take effect from August 7. The additional 25 per cent duty will apply to shipments arriving after a 21-day window, from August 28 onwards. 

 

During a press conference at the Oval Office, President Trump stated that no further trade negotiations will take place with New Delhi until the tariff issue is resolved, according to ANI.

 

Going ahead, the rupee's movement will be largely dictated by developments on the tariff front, according to Jateen Trivedi, VP research analyst - commodity and currency at LKP Securities. "The immediate trading range is seen between 87.40 and 88.15."

 

On Thursday, the RBI conducted another overnight variable rate reverse repo (VRRR) auction as the surplus liquidity in the banking system continues to hover around ₹4 trillion. On Wednesday, the net liquidity in the banking system was in a surplus of ₹3.90 trillion, according to the latest data from the RBI.

 

The dollar index, the measure of the greenback against a basket of six major currencies, was down 0.27 per cent at 98.13.

 

In commodities, crude oil prices headed for the steepest weekly losses since late June. Brent crude price was down 0.15 per cent at 66.33 per barrel, while WTI crude prices were higher by 0.19 per cent at 63.76, as of 9:12 AM IST.