Rupee sees selloff on Trump's Brics tariffs; ends 47 paise lower at 85.86/$

The Indian Rupee slipped as renewed pressures hit the currency after US President Donald Trump threatened to impose a 10 per cent tariff on countries aligning with Brics policies.

The domestic currency closed 47 paise lower at 85.86 against the dollar on Monday, the worst fall since June 13, according to Bloomberg. In intraday, the currency fell past the 86 mark, and pared losses on likely Reserve Bank of India (RBI) intervention.

The Rupee traded weaker as dollar strength returned amid renewed uncertainty over US trade deals, according to analysts. With the 90-day tariff extension period nearing its end and no formal agreements signed yet, market sentiment has turned cautious, Jateen Trivedi, VP research analyst - commodity and currency at LKP Securities.

"All eyes are now on the upcoming Fed meeting minutes, which could guide dollar direction further. Rupee is expected to trade in a range of 85.25 to 86.25 in the near term," Trivedi said.

President Trump, on Monday, threatened to levy an additional 10 per cent tariff on any country aligning itself with “the Anti-American policies of BRICS,” fueling more uncertainty in the markets. “Any country aligning themselves with the Anti-American policies of BRICS will be charged an ADDITIONAL 10 per cent Tariff,” Trump said in a Truth Social post. “There will be no exceptions to this policy.”

The group’s leaders, over the weekend, agreed to continue talks on a cross-border payment system for trade and investments, according to a Bloomberg report. Trump had previously threatened to slap 100 per cent levies on Brics in case they drop the dollar in bilateral trade.

Meanwhile, Treasury Secretary Scott Bessent told CNN that several major agreements are nearing completion, according to reports. As others remain out of reach, he added that some deals may include a three-week extension option. Following this, the dollar index, the measure of the greenback against a basket of six major currencies, was up 0.22 per cent at 97.39. The index has fallen 10.52 per cent so far this year.

However, India and the US are likely to take a final decision on the 'mini trade deal' in the next 24-48 hours, as per media reports.

In commodities, crude oil prices traded mixed after an initial fall as Opec+ announced a surprise increase in production. Brent crude price was up 0.34 per cent at $68.53 per barrel, while WTI crude prices were lower by 0.21 per cent at 66.86, as of 3:30 PM IST.