Rupee Sinks to 4-Month Low of 87.12 Amid Rising Trade Tensions with US

Market Performance

The Indian rupee took a sharp dip in early trade on July 30, sliding to 87.12 against the US dollar. This marks its lowest level in over four months, following mounting pressure from international developments.

• Previous close: ₹86.82
• Opening rate on July 30: ₹87.12
• Last time at this level: March 13 (₹87.13)

The fall was largely triggered by renewed concerns over trade relations between India and the United States, fueled by statements from former US President Donald Trump.

Main News

The primary driver of the rupee's decline was Donald Trump's statement hinting at reciprocal tariffs of up to 25% on Indian goods. These comments come as ongoing trade negotiations between India and the United States remain inconclusive.

“Yeah, I think so. They (India) are my friend and he (Modi) is my friend,” Trump said when asked about the proposed tariff range.

Despite multiple rounds of bilateral talks, no formal trade deal has been finalized. The tariff moratorium is set to expire on August 1, after which the new tariffs are expected to take effect.

Timeline:

• March 13: Last time rupee breached the 87-mark
• July 28: Trump issued a deadline on Russia, indirectly affecting oil markets
• August 1: US-India tariff pause ends
• Mid-August: Another US delegation expected for trade discussions

Additional Pressure from Crude Oil Prices

The rupee’s weakness was further aggravated by rising Brent crude oil prices, which surged significantly in early trade:

• Current price: $72.54 per barrel
• Previous price: $68.44 per barrel
• Gain: Over 3% in 24 hours

The increase in oil prices came after Trump issued an ultimatum to Russia over the Ukraine war, suggesting new sanctions could be imposed unless meaningful progress is achieved within 10–12 days.

This spike in oil prices raised concerns over India’s import bill, adding to the pressure on the rupee.

Company Details

While no specific company data was mentioned, the broader macroeconomic signals suggest possible import-driven inflationary trends. This may affect sectors dependent on foreign raw materials and energy imports, especially those with thin margins.

Summary of the Article

• The rupee sank to 87.12, its lowest level since March 13, mainly due to Trump’s tariff remarks.
• Trump hinted at 20–25% tariffs on Indian goods, citing India’s existing tariff barriers.
• The tariff moratorium ends on August 1, potentially activating reciprocal US duties.
• Brent crude oil rose over 3%, reaching $72.54 per barrel, adding further pressure.
• Ongoing geopolitical tension and lack of trade resolution are weighing on market sentiment.