Mumbai, February 27 – The Indian rupee weakened by 22 paise, reaching 87.41 against the US dollar in early trade on Thursday, as fresh tariff announcements from the US rattled emerging market currencies.
The rupee opened at 87.26 at the interbank foreign exchange before declining further to 87.41, marking a sharp drop from its previous close. On Tuesday, the currency had already registered a steep fall of 47 paise, settling at 87.19. Markets remained closed on Wednesday due to Mahashivratri.
Global Factors Weigh on the Rupee
The renewed US tariff measures have sparked uncertainty in global markets, strengthening the dollar against most currencies. President Donald Trump confirmed that tariffs on Canadian and Mexican goods would now take effect from April 2, following a postponement from the earlier deadline of March 4. Additionally, he hinted at a possible 25 per cent reciprocal tariff on European goods, fueling concerns over a trade war with the European Union.Despite the delay in certain tariff impositions, the US dollar index climbed 0.19 per cent to 106.62, reflecting the greenback’s continued strength.
Meanwhile, Brent crude futures traded 0.30 per cent higher at $72.75 per barrel, adding to inflationary concerns for oil-importing countries like India.
Market Outlook
Amit Pabari, MD of CR Forex Advisors, noted that USD/INR is likely to stay at elevated levels, with support at 87 and resistance at 87.50-87.60, as global trade tensions continue to weigh on investor sentiment.In the domestic equity market, the BSE Sensex edged 11.84 points higher to 74,613.96, while the Nifty 50 slipped 1.50 points to 22,546.05 in morning trade.
Foreign Institutional Investors (FIIs) remained net sellers, offloading ₹3,529.10 crore worth of equities on Tuesday, as per exchange data.
With persistent global uncertainty and a strong dollar, pressure on the rupee may continue in the near term.
Last updated by a enewsx: