The Fall of the Indian Rupee against the U.S Dollar

As of the month of July 2025, the Indian Rupee has been performing poorly against the U.S. Dollar. Following the imposition of the Trump Administration’s tariffs against India, situations of uncertainty regarding global trade have played a crucial role in influencing the value of the Rupee. The tariffs imposed against India has placed immense pressure on the Rupee, as it influences the prices of goods imported, creating further expenditure for Indian imports in paying the tariff rates.

As of today, the 11th of July, 2025, Friday, the Indian Rupee has closed in at a rate of 85.80 against the U.S. Dollar, weakening the currency by 10 paise. Due to the volatility of such prices, the Indian Rupee reached a trough of 85.91. The declining trend of the value of the Indian Rupee against the U.S Dollar encourages speculators to invest further in the U.S Dollar, and to stay away from the Indian Rupee for security purposes, ultimately selling vast sums of the Rupee.

News sources state that India is in continuous talks with the U.S.A to finalise a bilateral trade agreement; which could strengthen the Indian Rupee against the U.S Dollar. Traders should analyse news sources regarding trade agreements between the two countries to benefit from the purchase of the currency pair INR/USD.

On the contrary too, India’s gold reserves rose by $342 million, reported by the Reserve Bank of India. India, being a nation with high imports of gold, can utilise gold as a safety to balance price fluctuations, which can indirectly affect the INR. Gold is a safety that can be used to diversify a country’s central bank’s reserves. The utility of gold can also reduce reliance on the USD, especially amidst times of geopolitical tensions and global uncertainties.

Bibliography

1. https://timesofindia.indiatimes.com/business/india-business/currency-watch-rupee-falls-10-paise-to-85-80/-on-tariff-jitters-forex-reserves-dip-by-3-billion/articleshow/122391429.cms

2. https://www.thehindu.com/business/markets/rupee-falls-19-paise-to-8589-against-us-dollar-in-early-trade/article69799042.ece

3. https://www.freepressjournal.in/business/indias-gold-reserves-rise-by-342-million-forex-stands-at-699736-billion-rbi