The forex traders said global market sentiments were dented as U.S. President Donald Trump imposed 35% tariffs on Canadian goods. Representational file image.
| Photo Credit: Reuters
The rupee depreciated 7 paise to close at 85.77 (provisional) against the U.S. dollar on Friday (July 10, 2025), on weak domestic markets and risk-off sentiments amid trade tariff uncertainty.
Forex traders said global market sentiments were dented as U.S. President Donald Trump imposed 35% tariffs on Canadian goods.
At the interbank foreign exchange, the rupee opened at 85.76 against the U.S. dollar and touched an intraday low of 85.91 during the day. The local unit finally settled for the day at 85.77 (provisional), down 7 paise from its previous close.
On Thursday (July 10, 2025), the rupee pared initial gains and settled for the day higher by 3 paise at 85.70 against the U.S. dollar.
“We expect the rupee to weaken as the trade war continues to dent global risk sentiments. Uncertainty over trade tariffs and a higher U.S. dollar index may also pressurise the rupee. However, a weak tone in crude oil prices may support the rupee at lower levels,” said Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan.
Choudhary further added that USD-INR spot price is expected to trade in a range of 85.55 to 86.25.
Forex traders said the rupee traded in a volatile but narrow range as market participants stayed on the sidelines, waiting for clarity on the U.S.-India interim trade deal.
Meanwhile, Brent crude, the global oil benchmark, rose 0.34% to $68.87 per barrel in futures trade.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.13% to 97.77.
On the domestic equity market front, the Sensex dropped 689.81 points or 0.83%, to settle at 82,500.47, while the Nifty lost 205.40 points or 0.81%, to close at 25,149.85.
Foreign institutional investors (FIIs) purchased equities worth Rs 221.06 crore on a net basis on Thursday (July 10, 2025), according to exchange data.
Meanwhile, India is trying to negotiate and finalise a trade agreement with the U.S., Special Secretary in the Department of Commerce Rajesh Agrawal said on Thursday (July 10, 2025).
Agrawal is also the chief negotiator of the proposed India-U.S. bilateral trade agreement.
The aim is to conclude the first phase of this pact by fall (September-October) of this year. Before that, the two countries are looking to finalise an interim trade agreement.
An Indian Commerce Ministry team will soon visit Washington for another round of talks on the proposed trade agreement with the U.S. to iron out differences in sectors like agriculture and automobiles, a government official said on Thursday (July 10, 2025).
“We are not differentiating between an interim or the first phase of the bilateral trade agreement. We are negotiating a complete deal. Whatever will be finished, we can package it as an interim deal and for the rest, talks will continue,” the official said.
Published – July 11, 2025 04:20 pm IST