The rupee rose 15 paise to 87.73 against the U.S. dollar in early trade on Wednesday (August 6, 2025) amid a weakening dollar as markets awaited the end result of the Reserve Bank’s MPC meet.
However, an increase in international Brent crude costs and FII outflows capped additional positive aspects in the native unit, foreign exchange merchants stated, including that markets continued to watch for the end result on the U.S. tariffs.
At the interbank international trade, the home unit opened at 87.72 against the U.S. dollar earlier than dipping marginally to 87.73, registering an increase of 15 paise from its earlier shut.
The rupee revisited its all-time low degree and ended with a lack of 22 paise at 87.88 against the U.S. dollar on Tuesday (August 5, 2025), as risk-off sentiment deepened after U.S. President Donald Trump renewed threats to elevate tariffs on Indian items over New Delhi’s continued purchases of Russian oil.
Meanwhile, Reserve Bank of India (RBI) Governor Sanjay Malhotra-headed rate-setting panel, which began the three-day deliberations to resolve the following bi-monthly financial coverage on Monday (August 4, 2025), is scheduled to announce the coverage fee on Wednesday (August 6, 2025).
“The rupee which made a closing low on Tuesday (August 5, 2025) was well protected by RBI… and we wait to watch how long RBI protects it as Mr. Trump clamours to put additional tariffs on India today as no solution has emerged between the two countries,” Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, stated.
“If no solution emerges between the two countries in buying Russian oil, then the tariffs will come. Till then, we may expect the rupee to remain range-bound with RBI protecting 88 and FPIs continuing to buy dollars,” he stated.
Meanwhile, Brent crude costs rose 0.62% to $68.06 per barrel in futures trade.
“Russian Crude buyer sanctions continued to remain in focus. The U.S. may hit all such buyers like India and China with tariffs as he continued his threat on Tuesday (August 5, 2025). If China and India stop their purchases of Russian oil, it will tighten global supplies, and this notion has offered oil some support,” Bhansali added.
The dollar index, which gauges the dollar’s power against a basket of six currencies, was down 0.07% to 98.71.
In the home fairness market, the 30-share BSE Sensex rose 113.41 factors to 80,823.66 in early trade, whereas Nifty was up 19.20 factors to 24,668.75.
Foreign institutional buyers (FIIs) offloaded equities price ₹22.48 crore on a internet foundation on Tuesday (August 5, 2025), in accordance to trade information. Foreign institutional buyers (FIIs) offloaded equities price ₹22.48 crore on a internet foundation on Tuesday, in accordance to trade information.
