Rupee Drops 10 Paise to 88.12/USD Amid Tariff Pressures
Mumbai, September 5, 2025 — The Indian Rupee ended weaker today, slipping 10 paise to close at ₹88.12 against the US Dollar, amid sustained foreign fund outflows and concerns over global tariff disputes. The depreciation came despite strong domestic equity markets providing some cushion.
Market Factors Driving the Decline
Forex dealers noted that the Rupee faced selling pressure due to strengthening of the US Dollar Index overseas, triggered by renewed fears of higher US tariffs on select imports. Foreign investors have also been offloading Indian assets, adding to the currency’s weakness.
However, they added that positive domestic cues, including the recovery in stock markets and easing oil prices, helped prevent a sharper fall.
Day’s Trading Range
The Rupee opened lower at 88.04 and touched an intraday low of 88.18 before settling at 88.12, showing a net loss of 10 paise from the previous close of 88.02.
Equity Markets Provided Some Support
Meanwhile, domestic equity benchmarks rallied:
- BSE Sensex gained over 250 points, closing above 74,000.
- NSE Nifty surged past 22,300, supported by banking and IT stocks.
Analysts believe that investor optimism around corporate earnings and positive macroeconomic indicators will continue to support equities, which may indirectly stabilize the Rupee.
Global Context
The Dollar remained strong globally, buoyed by robust economic data from the US. Other Asian currencies, such as the Yen and the Yuan, also traded weaker, reflecting global currency market trends.
Expert View
Economists have warned that the Rupee is likely to remain under pressure in the near term. “The outlook for the Rupee remains cautious as external headwinds like tariffs, high US yields, and FII outflows persist. However, RBI interventions may limit excessive volatility,” said a senior forex analyst.
Source: Greater Kashmir (Read Original)
Labels: Indian Rupee, US Dollar, Forex, Economy, Stock Market
Tags: #Rupee #USDollar #Forex #Economy #BusinessNews
Disclaimer: This article is based on reporting by Greater Kashmir. Jammu News Portal does not assume responsibility for the accuracy of external content.
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