Rupee opens 15 paise up at 87.56 as dollar index eases

Indian rupee

The rupee opened 15 paise up on August 8 as the dollar index eased in early morning trade, overlooking US President Donald Trump’s comments ruling out trade talks with India.

The currency opened at 87.56 against the dollar after ending the previous day at 87.71.

The dollar index, which measures the greenback's strength against a basket of six major currencies, fell to 98.141 in the morning from the previous close of 98.40.

India and the US ties are steadily worsening after Trump ruled out any further trade negotiations and talked of secondary sanctions against countries buying Russian oil.

In response to a question on whether he expected talks between the two countries to resume in light of the 50 percent tariff, Trump said, “No, not until we get it resolved”. On August 6, Trump had announced an additional 25 percent tariff on Indian goods, taking the total levy to 50 percent, one of the highest in the world.

During a press briefing at White House, Trump was asked why India was being singled out for purchasing Russian oil when many other countries, including China, do the same. "It's only been 8 hours. So let's see what happens. You're going to see a lot more...You're going to see so much secondary sanctions,” he said.

"Going ahead, rupee movement will be largely dictated by developments on the tariff front. The immediate trading range is seen between 87.40 and 88.15," said Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities.