Mumbai: The Indian rupee opened at Rs 87.69 against the US dollar, breaching the 87-mark for the first time since February.
This sharp slide followed President Donald Trump’s late-night declaration of a 25% tariff on Indian goods, effective August 1. A secondary penalty measure also looms.
Equity markets reacted immediately. The BSE Sensex dropped over 600 points in early trade, while the Nifty50 shed 189 points or 0.76%, with steep losses in export-linked sectors. Gift Nifty futures also signalled continued bearishness, opening near 24,670.
Export-heavy industries like IT, pharmaceuticals, auto, textiles, and gems are expected to feel the most pain. Market analysts caution that India’s export competitiveness could suffer significantly, especially if countries like Vietnam or Bangladesh gain preferential U.S. access.
Foreign institutional investors are also pulling out. Data from July 29 showed net outflows of over $425 million from Indian equities and $4.6 million from bonds. Meanwhile, US Treasury yields rose to 4.36%, reflecting global risk aversion.
The Reserve Bank of India may be forced to step in soon if the rupee continues toward its all-time low of ₹87.95. Traders expect some stabilising action, though RBI has not issued an official statement as of this writing.
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