New Delhi, July 31 : The Indian rupee weakened further against the US dollar on Wednesday, closing 16 paise lower at 87.60 (provisional) due to negative sentiments in the currency market and persistent selling by foreign investors in the domestic stock market. The pressure was notably visible following US President Donald Trump’s announcement of a 25% tariff and penalty on India.
On the previous trading day, the rupee had closed at 87.44 per dollar.
Volatile Session Reflects Market Tensions
The trading day began with the rupee opening 25 paise lower at 87.69 against the dollar in the interbank foreign exchange market. Shortly after the session began, the rupee fell further to 87.75, marking a 31 paise drop due to prevailing negative sentiment in the market.
However, after 12 PM, a sharp recovery in the stock market led to renewed foreign investor interest, resulting in increased dollar inflow and a partial rupee recovery. The Indian currency strengthened up to 87.50—recovering 25 paise from its intraday low. But the gains were short-lived as foreign investors resumed dollar withdrawals, causing the rupee to fall once again and end the day at 87.60, down by 16 paise.
Tariff Threat and Sanctions Weigh on Sentiment
Forex market experts attributed the rupee’s weakness to the “tariff bomb” dropped by US President Donald Trump. The US has announced 25% tariffs and also imposed sanctions on six Indian companies over alleged trade with Iran, further dampening investor sentiment across both equity and currency markets.
Gains Against Other Major Currencies
Despite the weakness against the US dollar, the Indian rupee showed strength against other major international currencies. The rupee appreciated by ₹1.08 against the British Pound, closing at 115.88. It also gained 83 paise against the Euro to settle at 100.14.
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