July 23, 2025

The Indian rupee saw a slight appreciation to 86.26 against the US dollar as the domestic equity market showed positive trends. This comes amidst global uncertainty over tariffs, which has been a significant factor in the forex market's performance. With the looming August 1 deadline for possible tariffs on Indian exports, investors are carefully monitoring the India-US trade discussions. Forex traders highlighted the impact of global tariff uncertainty on currencies, causing them to trade within a narrow range. The domestic unit opened at 86.26 against the US dollar, marking a 5 paise increase from the previous close. Additionally, it reached 86.29 in early trade before settling at 86.26. In the previous session, the rupee had depreciated by 15 paise, closing at 86.31 against the US dollar. Meanwhile, the dollar index, indicating the greenback's strength against six major currencies, showed a slight increase to 97.88. The ongoing tension in global trade relations has put pressure on currencies and financial markets. Oil prices have been affected, with Brent crude falling to USD 68.65 per barrel in futures trade. Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors LLP, noted that the uncertainty surrounding trade deals could potentially impact economic activity and oil demand. Market analysts are closely watching the developments in the India-US trade talks as the August 1 deadline approaches. A failure or delay in the negotiations could add further pressure on Indian exporters. On the other hand, a successful agreement could provide some relief to the rupee. The upcoming round of negotiations between the US and India is crucial for setting the tone of the bilateral trade relationship. The fifth round of talks concluded recently in Washington, with both sides working towards a comprehensive trade agreement. In the domestic equity market, Sensex and Nifty showed positive movements, with Sensex rising by 149.47 points and Nifty by 36.80 points. However, Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,681.23 crore on a net basis. The overall sentiment in the financial markets remains cautious due to the lingering uncertainty over global trade dynamics and the impact it may have on various sectors of the economy.

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Tags: Rupee, Forex, Trade talks, Us dollar, Tariffs, Equity market,