Indian Rupee Volatile at 87.21-$87.60 Range Amid RBI Intervention and US Tariff Concerns, Markets Cautious After Five-Week Decline

The Indian rupee has experienced fluctuations against the US dollar over the past week, closing at 87.42 per dollar on July 30, weakening to 87.60 on July 31, and slightly recovering to 87.54 on August 1. On August 2, the rupee settled at 87.55 per dollar, showing marginal strength supported by potential intervention from the Reserve Bank of India (RBI). However, concerns over US tariffs and RBI monetary policy have put pressure on the rupee, contributing to cautious sentiment in Indian markets. After five consecutive weeks of declines, the Indian markets were expected to open the new week cautiously, with the rupee opening at 87.21 per dollar on August 4, stronger than the previous close of 87.54. The ongoing US tariff worries and RBI policy remain key factors influencing the currency and market outlook.