On Thursday, the Indian Rupee ended slightly stronger at 85.70 per US dollar, gaining 3 paise from the previous day’s close of 85.73. This small gain came as investors hoped for a possible trade deal between India and the US. However, stock markets went down due to ongoing worries about trade tariffs.
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During the day, the rupee traded between 85.53 and 85.70, as per interbank foreign exchange data (PTI).
According to Anuj Choudhary, a research analyst at Mirae Asset Sharekhan, the rupee gained because the US dollar was weak and global crude oil prices dropped. But weak Indian stock markets limited bigger gains.
Choudhary also mentioned that the hopes of a mini trade deal between India and the US might help the rupee stay strong, but global markets are still cautious because of tariff-related uncertainties. He expects the rupee to move between 85.40 and 85.95 in the near term.
On the trade side, a government official shared that a team from India’s commerce ministry will soon visit Washington for the next round of trade talks. These talks will cover areas like agriculture, automobiles, steel, and aluminium.
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The official said, “We’re working on a full trade deal. Whatever we agree on now can be presented as an interim deal, and discussions on the rest will continue.”
India is also asking the US to remove extra import duties (around 26% on Indian goods) which are in place until August 1. If not removed, India may consider retaliatory duties under WTO rules.
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In global markets, Brent crude oil prices fell 0.34% to $69.95 per barrel, and the dollar index slipped 0.15% to 97.41.
Back home, the Sensex dropped 345.80 points to 83,190.28, and the Nifty fell 120.85 points to 25,355.25. However, foreign investors were still buying, investing Rs 221.06 crore in Indian equities.
