The drop came after US President Donald Trump threatened a 25% tariff on Indian exports and hinted at penalties for India’s Russian oil and arms purchases.
Early trade saw the rupee touch an intraday low of 87.74. By comparison, it had closed at 87.80 on Wednesday (July 30) — its weakest ever.Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors, said the RBI is likely smoothing out volatility as oil companies ramp up dollar buying ahead of the Russia penalty deadline.
“The rupee, already down over 3% this year, stays under pressure with these new tariff threats,” he said.The dollar index edged lower by 0.03% to 99.78, while Brent crude slipped slightly to $73.10 per barrel. However, traders say global factors still favour the dollar. The US Federal Reserve held rates steady overnight and signalled it is not ready to cut yet.
Equity markets added to the pressure. The Sensex dropped 582 points to 80,899.37. The Nifty slipped 151 points to 24,802.45. Foreign investors pulled out ₹850 crore worth of shares on Wednesday (July 30) alone, exchange data showed.
Abhishek Goenka, CEO at IFA Global, expects more rupee swings in the coming days. “The RBI may need to stay active to keep the currency from slipping further as trade tensions escalate,” he said.
-With agencies inputs
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