Indian Rupee Tumbles 29 Paise to 87.95 Against USD – Dollar Dominance Strikes Again
Another day, another fiat currency bows to King Dollar.
The rupee bled 29 paise in early trade—dropping to 87.95 against the greenback as forex markets yawned at yet another emerging-market wobble. Traders barely looked up from their coffee.
Meanwhile, Bitcoin’s daily volatility eclipsed this move before breakfast. Just saying.
Classic fiat fragility meets dollar hegemony—while crypto traders stack sats and laugh at ‘stable’ currencies. The Fed’s printer goes brrr, and the world’s central banks scramble to keep up. Some things never change.
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Trump threatens to “substantially raise” tariffs on India for buying Russian oil
At the interbank foreign exchange market, the rupee opened on a weak note a tad above the sensitive 88 per US dollar level at 87.95 against the American currency, registering a decline of 29 paise over its previous close.
On Monday, the rupee depreciated 48 paise to close at 87.66 against the US dollar.
The rupee has touched a record intra-day low of 87.95 on February 10, 2025.
Last week, Trump mounted a sharp attack on India and Russia for their close ties and said the two countries can take their "dead economies down together", a remark which prompted New Delhi to say that India is the world's fastest-growing major economy.
Trump had earlier announced a 25 per cent tariff on imports of Indian goods along with an unspecified "penalty" for buying the "vast majority" of Russian military equipment and crude oil.
Also read
Why is Trump targeting India on Russian oil, but not China, asks expert
Meanwhile, Brent crude prices fell 0.28 per cent to $68.57 per barrel in futures trade, after OPEC+ agreed to hike another large output increase in September, adding to oversupply concerns after US data showed lacklustre fuel demand.
The dollar index, which gauges the greenback's strength against a basket of six currencies, ROSE marginally 0.04 per cent to 98.81.
"The dollar could from here go to a broader downtrend given US policy-making uncertainty and an economy that is finally showing the cracks," Bhansali said.
Meanwhile, investors remain cautious ahead of the RBI monetary policy decision this week.
The RBI Governor Sanjay Malhotra-headed rate-setting panel on Monday started the three-day deliberations to decide the next bi-monthly monetary policy.
The six-member Monetary Policy Committee (MPC) is scheduled to announce the next bi-monthly policy rate on Wednesday (August 6).
In the domestic equity market, Sensex declined 200.40 points or 0.25 per cent to 80,818.32, while Nifty fell 58.90 points or 0.24 per cent to 24,663.80.
Foreign institutional investors (FIIs) offloaded equities worth ₹2,566.51 crore on a net basis on Monday, according to exchange data.
Published on August 5, 2025
