Indian Rupee Ends at 87.60 Against Dollar Amid Powell’s September Rate Cut Signals and US Tariff Concerns

The Indian rupee showed mixed performance against the US dollar over the course of the week ending August 25, 2025. It opened at 87.03 per dollar on August 21, slightly stronger than the previous close of 87.07. However, the rupee declined over the next two days, closing at 87.27 on August 21 and further weakening to 87.53 on August 22. On August 25, the rupee initially gained strength, opening at 87.39, following dovish monetary policy signals from Federal Reserve Chair Jerome Powell, who indicated the possibility of rate cuts in September. This guidance led to an increase in forward premiums for the rupee. Despite these positive factors, concerns about the impending US tariff increase on Chinese goods, scheduled to take effect soon, weighed on the rupee. The currency gave up early gains and closed slightly lower at 87.60 on August 25. Market analysts noted that while Powell's comments provided some support to the rupee, the looming tariff worries and fiscal developments in India are expected to influence the currency's trajectory going forward.