The Indian rupee weakened past the 86 mark against the US dollar on July 7, 2025, dropping by 61 paise following US President Donald Trump’s announcement of an additional 10% tariff on countries aligning with BRICS. The move sparked uncertainty around the India-US trade relationship, pressuring the local currency in afternoon trading.
The Indian rupee slipped sharply on Monday, crossing the 86 mark against the US dollar, after US President Donald Trump issued a warning about additional tariffs on BRICS-aligned countries. The currency opened at ₹85.5837 per USD but weakened further in the afternoon trade to ₹86.0038, marking a 61 paise loss from the previous close of ₹85.3950.
The pressure on the rupee was intensified by heightened uncertainty surrounding the India-US trade dialogue, according to currency market analysts.
Any country aligning themselves with the Anti-American policies of BRICS will be charged an ADDITIONAL 10% tariff. There will be no exceptions to this policy.”
President Donald Trump, United States.
The statement was issued amid the BRICS annual summit being held in Rio de Janeiro, Brazil, where member countries—Brazil, Russia, India, China, and South Africa—are discussing closer economic cooperation.
The warning sent ripples through global currency markets, with emerging market currencies facing volatility. For India, the rhetoric comes at a critical time as New Delhi continues to engage in bilateral trade discussions with Washington to resolve outstanding tariff and investment issues.
While the Indian Ministry of External Affairs has not issued a formal response yet, analysts believe the government will seek to clarify its trade and geopolitical alignment to avoid any deterioration in bilateral economic ties with the United States.
The rupee’s depreciation reflects both external geopolitical risks and internal economic sensitivities, particularly amid global monetary tightening cycles and India’s import dependency.
