Indian Rupee trades slightly weaker ahead of CPI; opens at 87.68/$

Indian Rupee today: The domestic currency opened 2 paise weaker at 87.68 against the dollar on Tuesday

The Indian currency traded slightly weaker on Tuesday as a dip in the dollar index was overshadowed by higher crude oil prices.

 

The domestic currency opened 2 paise weaker at 87.68 against the dollar on Tuesday, according to Bloomberg. The rupee has depreciated by 2.4 per cent in the current financial year, whereas it has witnessed 2.2 per cent depreciation in the current calendar year.

 

The Indian currency, which was sold off in the previous session after rising to 87.48, is expected to open slightly weaker, according to Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP. "Exporters may continue to sell in the near term, while importers are likely to wait to hedge, with the Reserve Bank of India (RBI) standing in the way of a further decline."

 

 

Foreign exchange reserves fell $9.3 billion to $688 billion in the week ended August 1, the steepest weekly decline of 2025 and the biggest since November 2024. Of that, $6.9 billion came from spot market sales, while revaluation losses accounted for $2.1 billion. 

 

US President Donald Trump signed an executive order extending the tariff truce with China by another 90 days, just ahead of the previous deadline. Trump also clarified that the import of gold will not face US levies, helping the metal to slightly trim its intraday decline.

 

The domestic currency has fallen 2.3 per cent so far this calendar year, even as the dollar index — which tracks the greenback against six major peers including the euro, Japanese yen, British pound, Swiss franc, Canadian dollar and Swedish krona — has dropped 9.53 per cent. This is because subdued capital inflows and external headwinds weighed on sentiments. 

 

Meanwhile, the focus will also be on the July India CPI data, set to be released today. Globally, investors await key US Consumer Price Index (CPI) and Core CPI data on Tuesday for cues on the US Federal Reserve's next moves.

 

US President Donald Trump said he plans to meet Russian President Vladimir Putin in Alaska on Friday to broker an agreement to end the war in Ukraine. Any ceasefire could be positive for India, as the additional 25 per cent tariff Trump levied on Russian oil purchases would be void.

 

In commodities, oil prices edged higher despite being near a two-month low. Brent crude price was up 0.39 per cent at 66.89 per barrel, while WTI crude prices were higher by 0.31 per cent at 64.16, as of 9:15 AM IST.