Rupee Ends Flat Against the Dollar

The Indian rupee closed flat at 87.58 against the US dollar on Friday, buoyed by a weaker greenback and renewed foreign fund inflows, despite ongoing trade tensions with the US.

Market Sentiment Under Pressure

Forex traders noted the rupee moved within a narrow range, influenced by domestic equity weakness and caution over impending US tariff actions set to take effect later this month.

Impact of US Tariff Announcements

The US has announced an additional 25% tariff on all Indian imports, raising total duties to 50%, among the highest ever imposed by the US, effective from August 27.

Foreign Institutional Investors Turn Net Buyers

FIIs turned net buyers after several days, purchasing Rs 1,932.81 crore worth of equities on Friday, despite broader market pressures.

Domestic and Global Factors

Meanwhile, India’s forex reserves saw one of the steepest weekly drops in recent months, falling by $9.322 billion to $688.871 billion for the week ended August 1.