Updated on: Aug 19, 2025 11:58 am IST
An escalation in US tariffs on India could have driven the rupee/dollar to break past key levels on the upside.
The Indian rupee climbed to its highest level so far this month, supported by lower risks of additional US tariffs on domestic goods and optimism that planned tax cuts will bolster growth.
The rupee rose as much as 87.2050 per US dollar on Tuesday, compared with 87.35 in the previous session. It was last at 87.2250.
The currency is being supported by the Trump-Putin meeting and subsequent talks between the US and Ukrainian presidents, raising hopes of a peace deal. This, Nomura said in a note, “appears to reduce the likelihood of additional tariffs/sanctions on India in relation to the purchase of Russia oil”.
An escalation in US tariffs on India could have driven the rupee/dollar to break past key levels on the upside.
Prime Minister Narendra Modi’s planned GST rationalisation is expected to support consumption and has also lifted sentiment in the rupee. Economists said the measures could provide a near-term boost to growth momentum and help offset the drag from weak external conditions.
The rupee’s Asian peers were mostly lower on Tuesday, pegged back by a rise in US yields. The 10-year US yield hit the highest in two weeks on Monday.
