Trump allegedly urges the EU to impose tariffs on India while supporting trade discussions, causing the rupee to open 2 paise weaker at 88.13/USD.

On September 10, the Indian rupee began 2 paise lower against the US dollar at 88.1362. This came after news reports stated that US President Trump had asked the European Union to impose up to 100% tariffs on China and India for their purchases of Russian oil. "The Indian rupee (is likely) to trade in the range of 87.80 to 88.30 against the US dollar," stated Anil Kumar Bhansali, Executive Director and Head of Treasury at Finrex Treasury Advisors LLP. Despite the US administration's 50% tariff on Indian exports, President Trump's announcement on Truth Social that Washington and New Delhi will resume negotiations to settle current trade frictions is providing some support for the currency's recent decline. In his statement, Trump said, "I am pleased to announce that India, and the United States of America are continuing negotiations to address the Trade Barriers between our two Nations," raising the possibility that talks could finally resolve the tariff tensions between the two nations. "In the coming weeks, I'm excited to talk with Prime Minister Narendra Modi, who is a very good friend of mine. He added, "I am confident that reaching a successful conclusion for both of our Great Countries will not be difficult." Prime Minister Modi said that he too was "looking forward" to speaking with President Trump, only hours after the President loosened his position on the trade agreement between the US and India. The Indian rupee opened marginally weaker at 88.13 against the US dollar on September 10, after reports surfaced that US President Donald Trump had urged the European Union to impose tariffs of up to 100% on China and India for their purchases of Russian oil. The development heightened concerns around trade tensions and currency volatility, though market experts believe the rupee will likely trade within the 87.80 to 88.30 band in the near term. According to Anil Kumar Bhansali, Executive Director at Finrex Treasury Advisors, the currency remains under pressure but is finding some stability despite global headwinds. Adding to the uncertainty is the existing 50% tariff the US has already placed on Indian exports. However, Trump’s announcement that Washington and New Delhi would resume trade negotiations has provided a degree of relief to the markets. His remarks on Truth Social indicated that both sides are committed to addressing trade frictions, raising hopes that the tariff-related stress may ease in the coming weeks. Trump also emphasized his personal rapport with Prime Minister Narendra Modi, expressing confidence that a “successful conclusion” could be reached quickly. He noted that upcoming discussions between the two leaders would be pivotal in reducing trade barriers and strengthening bilateral economic ties. Modi, in response, welcomed Trump’s comments and said he looked forward to the talks, signaling readiness from India’s side to push for resolution.