As the dollar index eases, the rupee opens 15 paise higher at 87.56.

Despite US President Donald Trump's remarks that ruled out trade discussions with India, the rupee opened 15 paise higher on August 8 as the dollar index dropped in early morning trading. After closing at 87.71 versus the dollar the day before, the currency began at 87.56. The dollar index, which gauges the strength of the US dollar relative to a basket of six major currencies, dropped from its previous closing of 98.40 to 98.141 in the morning. Following Trump's rejection of any additional trade talks and his discussion of secondary sanctions against nations who purchase Russian energy, India-US relations have been rapidly deteriorating. Trump responded, "No, not until we get it resolved," when asked if he anticipated negotiations between the two nations to begin in light of the 50% tariff. Trump announced an extra 25 percent duty on Indian imports on August 6, making the total levy one of the highest in the world at 50 percent. The Indian rupee opened 15 paise higher at 87.56 against the US dollar on August 8, primarily driven by a softening in the dollar index, which dropped to 98.141 from its previous close of 98.40. This slight appreciation in the rupee comes despite the growing tensions between India and the United States, following US President Donald Trump's recent comments dismissing the possibility of further trade talks. The previous session had seen the rupee close at 87.71, and today's early gains indicate a momentary relief led by global currency movement rather than domestic factors. Trump’s statements, which included the imposition of an additional 25% tariff on Indian imports—taking the total duty to 50%—have significantly escalated trade-related friction between the two nations. The US president also reiterated the possibility of secondary sanctions on countries purchasing Russian energy, which includes India. These moves are seen as part of a broader strategy to pressure India into aligning with US geopolitical stances, particularly regarding Russia. Despite these developments, the currency market seemed to temporarily overlook the geopolitical headwinds, focusing instead on the weakening dollar index. However, analysts warn that this support might be short-lived if diplomatic tensions worsen or if the US follows through with punitive economic measures. For India, the situation presents a dual challenge—navigating strained diplomatic relations while managing currency stability amid external economic pressures.