Rupee slips as Trump sticks to tariff deadline; opens lower at 85.59/$

Indian Rupee today: The domestic currency opened 6 paise lower at 85.59 against the dollar, according to Bloomberg

The Indian Rupee slipped on Tuesday as the currency saw renewed pressure from US President Donald Trump's looming tariff deadline. 

 

The domestic currency opened 6 paise lower at 85.59 against the dollar, according to Bloomberg. Most Asian currencies declined on Wednesday amid Trump's comments on extending the tariff deadline. 

 

The unit has depreciated by around 0.21 per cent in June and has fallen by 0.18 per cent in the first six months of the calendar year.

 

Trump said he is not considering delaying his July 9 deadline for higher tariffs to resume. He also added the US and India will soon finalise a trade deal with “much lower tariffs,” which would enable fairer competition between the two countries. 

 

 

 

The Indian rupee remained volatile on Tuesday, as markets await the conclusion of the India-US trade deal, which is in its final stages, according to Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP. "Buying interest emerged below 85.50, with nationalised banks seen actively purchasing dollars. Meanwhile, upticks in the dollar were sold off, amid a decline in the dollar index." 

 

With no clear directional cues, the rupee is expected to remain range-bound between 85.35 and 85.95, Bhansali said. The RBI’s outstanding net short dollar position in the forward market fell further to $45 billion by the end of May, against $52 billion at the end of April, according to the central bank’s latest data.

 

Market participants will closely watch key US data this week, including non-farm payrolls, unemployment rate, and ADP employment data, which could influence dollar direction, analysts said.  US Federal Reserve Chairman Jerome Powell's comment that the central bank would have already cut interest rates if it weren’t for Trump’s tariff initiatives will also be eyed. 

 

Meanwhile, the dollar index extended its fall as Trump escalated trade tensions. The measures the greenback against a basket of six major currencies, was down 0.14 per cent at 96.68. The index has fallen 10.93 per cent so far this year.

 

In commodities, crude oil prices were trading slightly higher ahead of the Opec+ meeting to determine the August output levels. Brent crude price was up 0.06 per cent at $67.15 per barrel, while WTI crude prices were higher by 0.03 per cent at 65.47, as of 9:15 AM IST.