After hitting an all-time low of ₹87.80 against the US dollar earlier this week, the Indian rupee regained 15 paise on Thursday, closing at ₹87.65.
The modest improvement offered temporary relief to currency traders and import-heavy sectors facing pressure from volatile global conditions.
Recovery was driven by strong domestic market sentiment.
The Sensex jumped 472 points, crude oil prices declined slightly, and foreign portfolio investors poured in around ₹1,250 crore into Indian bonds—all helping prop up the rupee.
Analysts also credited the Reserve Bank of India (RBI) for stabilizing moves and targeted intervention.
Geopolitics in Play
However, currency experts remain cautious.
The rupee’s future performance hinges on factors such as the US Federal Reserve’s interest rate trajectory, inflation data from major economies, and escalating geopolitical tensions.
PTI INFOGRAPHICS | Rupee recovers 15 paise from all-time low to close at 87.65 against US dollar
READ: https://t.co/Md9tR2Ubkl pic.twitter.com/rft5rVrlO3
— Press Trust of India (@PTI_News) July 31, 2025
Trump’s Tariff Legacy and Renewed Trade Frictions
Trade watchers also point to ripple effects from the ongoing U.S.-India tariff disagreements.
Former President Donald Trump’s administration had imposed a 25% tariff on selected Indian goods, triggering a series of retaliatory measures and complicating the bilateral trade landscape.
Despite diplomatic efforts under successive administrations, these tariffs remain a sticking point, especially amid concerns over India’s growing trade with Russia.
Atul Keshap of the U.S.-India Business Council recently stated that “American officials continue to express concern over India’s economic alignment and defense purchases,” hinting that tariff penalties could be revisited if strategic disagreements persist.
Rupee vs US Dollar – Past Three Days
| Date | Closing Rate |
|---|---|
| July 29, 2025 | ₹87.45 |
| July 30, 2025 | ₹87.80 (Record Low) |
| July 31, 2025 | ₹87.65 |
With economic diplomacy and global markets in flux, stakeholders are closely tracking the Indian rupee’s resilience.
