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Indian rupee depreciates amid dollar demand

05 Aug 2025 Evaluate

Indian rupee depreciated against the US dollar on Tuesday as India-US trade deal uncertainty continued to dent domestic market sentiments. Traders overlooked the report that seasonally adjusted HSBC India Services PMI Business Activity Index grew to 60.5 in July from 60.4 in June. The rate of expansion was the best seen since August 2024. Further, the HSBC India Composite PMI Output Index -- which measures both manufacturing and services -- also surged to 61.1 in July as against 61.0 in June, indicating a sharp rate of expansion that was the quickest since April 2024. On the global front, British pound strengthened against other major currencies in the European session on Tuesday, as traders shifted their focus to the Bank of England's (BoE) monetary policy announcement on Thursday.

Finally, the rupee ended at 87.77 (Provisional), depreciated by 11 paise from its previous close of 87.66 on Monday. The currency touched a high and low of 87.95 and 87.73 respectively.

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