Rupee advances tracking Asian peers; opens 34 paise higher at 87.20/$

Indian Rupee today: The domestic currency closed 34 paise higher at 87.20 against the dollar on Monday

The Indian Rupee gained in Monday morning trade, tracking strength in Asian currencies and supported by a decline in crude oil prices and the Dollar Index.

 

The domestic currency opened 34 paise higher at 87.20 against the dollar on Monday, according to Bloomberg. All Asian currencies, except the Hong Kong Dollar and Japanese Yen, were trading higher. 

 

Weighed down by foreign outflows, the currency depreciated by 2.14 per cent in July, the highest monthly fall since September 2023. The rupee fell 1.2 per cent last week, marking its biggest weekly drop since December 2022.

 

The Indian Rupee is set to open at a higher level, supported by a decline in the Dollar Index and a rise in Asian currencies, according to Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP. He noted that the currency is expected to trade in the 87–87.50 range. Exporters are likely to sell on upticks, while importers may purchase to meet near-term dollar requirements while waiting to hedge, he added. 

 

 

All eyes will be on RBI Governor Sanjay Malhotra as the Monetary Policy Committee (MPC) begins its meeting today, August 4, to decide on key interest rates. The RBI is likely to remain status quo as per a Business Standard poll, with all analysts expecting a further reduction in the 2025-26 (FY26) inflation forecast.  

 

According to a Business Standard poll, the rupee is expected to trade with heightened volatility, with a majority of the respondents seeing the local currency’s target level near 88 per dollar, and support level near 86.50 per dollar, by September 2025.

 

Meanwhile, responding to US President Donald Trump's 25 per cent tariff, Indian Prime Minister Narendra Modi urged citizens to buy locally made goods to help cushion the economy. India also remained firm on its Russia ties with a broad consensus on avoiding retaliation and resorting to negotiations.

 

The dollar index, the measure of the greenback against a basket of six major currencies, was down 0.4 per cent at 98.74. 

 

In commodities, crude oil prices fell after Opec+ hiked production again in September, proposing to add 547,000 barrels a day next month. Brent crude price was down 0.29 per cent at 69.47 per barrel, while WTI crude prices were lower by 0.21 per cent at 67.19, as of 9:06 AM IST.