Rupee Depreciates by 4 Paise Against the Dollar in Morning Trade

Mumbai, July 2 – In the early Wednesday trade, the Indian Rupee depreciated by 4 paise to ₹85.63 against the USD. This is largely attributed to the updates regarding the India-US trade negotiations, which are reaching in a critical phase. The 90-day tariff pause is set to expire on July 9, and a final consensus on the trade deal has not been reached. Key issues involving the agriculture, auto parts, and steel industries remain unresolved.

Similar to the INR, Japan’s Yen, Korea’s Won, and Thailand’s Baht have also weakened as Trump ruled out extending trade deal deadlines.

Dollar Under Pressure, Fed Chair’s Dovish Tone Weighs

The domestic currency opened at 85.59 at the interbank foreign exchange and slipped to a low of 85.63, compared to its previous close of 85.59 on Tuesday, when it had appreciated by 17 paise.

Forex traders noted that the dollar index, which measures the greenback’s strength against a basket of six major currencies, declined 0.11 percent to 96.70. The softening of the US dollar followed dovish signals from US Federal Reserve Chair Jerome Powell, adding to global uncertainty.

India-US Trade Talks Enter Final Stretch

Market sentiment remains cautious as high-level trade talks between India and the United States continued for the sixth consecutive day in Washington. The Indian delegation, led by Rajesh Agrawal, Special Secretary in the Department of Commerce, is pushing for greater market access for India’s labour-intensive products. The interim deal is expected to be concluded before the July 9 deadline.

Brent Crude and Market Snapshot

In commodities, Brent crude futures edged up 0.04 per cent to USD 67.14 per barrel.

On the domestic equity front, the BSE Sensex was up 41.24 points or 0.05 per cent at 83,738.53, while the NSE Nifty slipped marginally by 4.35 points or 0.02 per cent to 25,537.45.

Foreign institutional investors (FIIs) turned net sellers, pulling out Rs 1,970.14 crore from Indian equities on Tuesday, according to provisional exchange data.

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