Rupee falls 10 paise to close at 87.57 against U.S. dollar

Rupee pared initial gains and settled for the day on a negative note, lower by 10 paise at 87.57 (provisional) against the U.S. dollar on Thursday (August 14, 2025), as it came under pressure due to continued dollar demand from importers.

Forex traders said the rupee pared initial gains on positive crude oil prices, dollar demand from importers and foreign fund outflows.

Moreover, there is an overall negative bias amid uncertainties over the trade tariff issue between India and the U.S.

At the interbank foreign exchange, the domestic unit opened at 87.48 and moved in a range of 87.39 to 87.67 during the day before settling at 87.57 (provisional), lower by 10 paise from its previous close.

On Wednesday (August 13, 2025), the rupee appreciated 16 paise to close at 87.47 against the US dollar.

According to forex traders, investors are in a wait-and-watch mode ahead of the U.S.-Russia talks on August 15.

Meanwhile, Brent crude prices rose 0.49% to $65.95 per barrel in futures trade as it regained ground after falling much more in the previous session, with the upcoming U.S.-Russia talks raising risk premiums in the market.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.02% to 97.82.

In the domestic equity market, Sensex climbed 57.75 points to settle at 80,597.66, while the Nifty closed 11.95 points up at 24,631.30.

Foreign Institutional Investors offloaded equities worth ₹3,644.43 crore on Wednesday (August 13, 2025), according to exchange data.

On the domestic macroeconomic front, S&P on Thursday (August 13, 2025) upgraded India’s sovereign credit rating to ‘BBB’ with a stable outlook after a gap of nearly 19 years, citing robust economic growth, political commitment for fiscal consolidation and ‘conducive’ monetary policy to check inflation.

The impact of US tariffs on the Indian economy will be “manageable”, S&P said, adding that a 50% tariff on U.S. exports (if imposed) will not pose a “material drag” on growth.

“India is relatively less reliant on trade and about 60% of its economic growth stems from domestic consumption,” it said.

The rating upgrade by a U.S.-based agency comes days after American President Donald Trump dubbed India as a “dead economy”. Mr. Trump has imposed the highest 50% tariff on Indian goods with effect from August 27.

Also, the rating upgrade will help lower borrowing cost of Indian companies in international markets.