PM Modi and Donald Trump
US President Donald Trump’s tariff bomb was faced by India. In the morning session of Thursday and Friday, there is only a slight decline in the stock market. But on the very first day of the month, the entire Washington DC has been shaken by the attack on America by India. The world’s biggest economy is unable to understand how this happened? In fact, the rupee has shown such a boom in the dollar, which no one expected. The special thing is that on Thursday, if Thursday’s boom is mixed, the rupee has seen an increase of 55 paise by knocking the dollar. Even in the morning session, the rupee is trading up a gain of 40 paise in the currency market.
By evening, it can be seen further. The main reason for this boom is the rise in crude oil prices and the intervention of RBI. However, the dollar is still trading around the index 100 level. Earlier, the American tariff is being implemented from August 7. With which an executive order has been issued by Washington. The US has imposed a 25 per cent tariff on Indian exports, due to which the concerns of investors have increased. Let us also tell you that in which level the rupee is seen doing business against the dollar in the currency market.
Rupee has a tremendous rise against dollar
There is a tremendous rise in the rupee against the second consecutive dollar. The rupee rose by 40 paise to 87.25 against the US dollar in early trade on Friday amidst the low crude oil prices and the Reserve Bank of India (RBI) intervention. Foreign currency traders said that the US imposing 25 percent tariff on Indian exports has created a risk-free sense and concerns about the rupee further have increased. In addition, investors are focused on imposing new and most high tariffs on US business partners from 1 August by US President Donald Trump.
In the Interbank Foreign Currency Exchange Market, the rupee opened at 87.60 and touched an early high level of 87.25 against the dollar, showing a gain of 40 paise in the previous closed price. On Thursday, the rupee rose by 15 paise to close at 87.65 against the US dollar at 87.65. This means that the rupee has seen a rise of 55 paise against the dollar. According to experts, you can see ups and downs in the coming few days.
Crude oil prices fall
Meanwhile, the dollar index measuring the dollar strength against six currencies rose 0.07 per cent to 100.03. Brent oil prices fell 0.97 per cent to $ 72.53 per barrel, as traders have understood the impact of new, high American tariffs, which may reduce economic activities and reduce global fuel demand.
In the domestic stock market, the Sensex fell 145.71 points or 0.18 percent to 81,039.87, while the Nifty fell 64.70 points or 0.26 per cent to 24,703.65. According to exchange data, foreign institutional investors (FIIs) on Thursday sold shares worth Rs 5,588.91 crore on a pure basis.
On the domestic large economic front, according to data released by the Accounts of Accounts (CGA) on Thursday, the fiscal deficit of the Center was 17.9 per cent of the entire year target in late June. In the first three months of the last financial year, it was 8.4 percent of the budget estimate (BE) of 2024-25. Overall, the difference between fiscal deficit, or government expenditure and revenue, was Rs 2,80,732 crore in the April-June period of FY 2025-26.
What do you say?
Anil Kumar Bhansali, Treasury Head and Executive Director of Finrex Treasury Advisors LLP, said that the dollar is moving towards its best week in almost three years as against its major counterparts, it remained a boom on Friday, while Donald Trump implemented new tariffs on dozens of trading partners.
Bhansali said that the rupee reached a low of 87.75 on Thursday, but it closed at 87.5950 when the RBI intervened to calm the market. He said that if protected by the Reserve Bank of India (RBI), the Indian rupee may soon reach 87.00 levels in the coming days, but to keep it in a limited range requires the presence and strict monitoring of RBI.