Rupee opens 6 paise down at 85.59 against the dollar as tariff worries resurface

Indian Rupee

The rupee opened 6 paise down on July 2 at 85.59 against the US dollar, tracking declines in other Asian currencies and markets over fresh US tariff worries as the 90-day pause nears end.

The rupee closed the previous session at 85.53.

The dollar index, which measures the American currency against a basket of currencies, fell to 96.66 in the early trade after ending at 96.81 in the previous session.

"As market awaits for the deal, we expect the rupee to be range bound between 85.35/95 with no particular direction," said Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP.

India and the US are trying to seal a mini-deal before July 9 when new tariffs kick in. As reported by Moneycontrol, the US's demand for greater access for American agricultural and dairy products has emerged as a major sticking point.

US President Donald Trump though has expressed confidence, saying the agreement would involve “much less tariffs” and would allow both countries to compete on a more even footing.