Key Takeaways
- The Indian Rupee (INR) opened at 87.60 against the US Dollar (USD), holding steady despite global currency volatility, though it had touched a record low of 87.60 in the previous session due to US tariff concerns.
- Taiwanese President Lai Ching-te stated that the recently imposed 20% US tariff on Taiwan is "temporary," with ongoing negotiations aimed at achieving a lower, "appropriate" rate.
- India's 10-year benchmark government bond yield remained at 6.37%, reflecting cautious sentiment and reduced expectations for immediate rate cuts by the Reserve Bank of India (RBI).
The Indian Rupee (INR) commenced trading at 87.60 against the US Dollar (USD) on Friday, August 1, 2025, showing little change from its previous close of 87.59. This stability comes despite a backdrop of heightened volatility in global currency markets. The rupee had previously hit an all-time low of 87.60 on July 31, driven by concerns over the imposition of higher tariffs by the US on Indian goods. Analysts anticipate the rupee to trade within a range of 87.35 to 88.00 throughout the day.
Meanwhile, trade tensions continue to dominate headlines as Taiwan addresses new US tariffs. President Lai Ching-te affirmed that the 20% tariff recently imposed by the US is provisional, with ongoing discussions aimed at securing a more favorable rate. Taiwan's President emphasized that a 20% tariff rate was not Taiwan’s intended negotiation objective. The Trump administration initially threatened a 32% tariff on Taiwanese imports, excluding semiconductors, before lowering it to 20%. Taiwan, a global leader in chip manufacturing, has seen its trade surplus with the US grow due to strong demand for AI-related technology, placing it in the crosshairs of US tariff policies.
In the Indian bond market, the 10-year benchmark government bond yield stood at 6.37%, unchanged from its previous close. This reflects a cautious sentiment among market participants, with expectations for rate cuts by the Reserve Bank of India (RBI) having diminished. The yield had previously risen to this level on July 29, reaching its highest point since June 11, following statements from the RBI governor that curbed expectations for easing measures.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.