Rupee Falls 16 Paise to 87.82 Against US Dollar

Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, said, “We expect the rupee to continue its downward trend as uncertainty over the India-US trade agreement affects domestic market sentiment. Weakness in domestic equity markets and foreign capital outflows could further pressure the rupee.”Choudhary added, “

The rupee may remain weak ahead of the Reserve Bank of India’s monetary policy decision. The market expects the central bank to cut the repo rate further. However, a weakening US dollar, amid growing expectations of a Federal Reserve rate cut in September, could provide some support to the rupee at lower levels.”

Meanwhile, investors are cautious ahead of the Reserve Bank of India’s (RBI) monetary policy decision. The six-member Monetary Policy Committee (MPC) is set to announce its next bi-monthly monetary policy review on Wednesday.

According to stock market data, foreign institutional investors (FIIs) were net sellers on Monday, offloading shares worth ?2,566.51 crore.

Notably, US President Donald Trump warned on Monday that he would significantly increase tariffs on India due to its oil purchases from Russia.

 In response, India hit back at the US and the European Union on Monday, calling their targeting of India’s Russian oil imports “unfair and imprudent.” India stated that it began importing from Russia because traditional supplies were diverted to Europe after the conflict began.