The Indian rupee opened stronger on Monday, defying concerns over an additional 25% tariff proposed by US President Donald Trump on Indian goods, set to take effect from August 27.
The local currency rose 13 paise to 87.53 against the US dollar, compared to Friday&rsquo;s close of 87.66. Analysts expect the rupee to trade between 87.25 and 87.80 in the near term. Gains were supported by optimism that the August 15 US&ndash;Russia negotiations could end the Russia-Ukraine war, potentially paving the way for tariff removal.
Markets are also eyeing key domestic inflation releases, CPI on August 12 and WPI on August 14, alongside US inflation data for further cues.
If implemented, the proposed tariffs could weigh on the rupee by denting export revenues, triggering capital outflows, and stoking inflation. Sectors like textiles, leather, and seafood are likely to be hit the hardest. India has criticised the move, calling it &ldquo;unfair and unreasonable,&rdquo; noting that it faces a harsher 50% tariff rate compared to China&rsquo;s 30% and Turkey&rsquo;s 15%, despite all three importing Russian oil.
In global markets, Brent crude fell to $66.25 per barrel in early Asian trade, extending last week&rsquo;s declines as traders bet on a breakthrough in US&ndash;Russia talks. China&rsquo;s weaker-than-expected July economic data also kept the oil demand outlook subdued.
While FIIs continued selling Indian equities last week amid global risk aversion, sustained DII buying provided some support to the markets.
[Except for the headline, this article has not been edited by the Benefit News editorial team and is published directly from the IANS news feed.]
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Indian rupee rises on hopes of Russia-Ukraine peace despite looming US tariffs

Rupee Gains vs Dollar Despite Tariff Worries

Indian rupee rises on hopes of Russia-Ukraine peace despite looming US tariffs

August 11, 2025 | 16:58 IST