Rupee falls 22 paise to 87.41 against US dollar in early trade today

Rupee fell 22 paise to 87.41 against US dollar in early trade on 27 Feb 2025. This movement was driven by a mix of international economic factors and statements of a policy nature.

Rupee's Performance

• Current: The rupee dropped 22 paise to 87.41 per US dollar.
• Open: Opened at 87.26.
• Previous Close: The rupee on Tuesday had settled 47 paise lower at 87.19.

What Could Move the Rupee: Major Key Factors

• US Tariff Announcements: The new tariff announcements from the US were the key trigger for the rupee's decline, overshadowing other emerging currencies. Global markets were disrupted and the US dollar appreciated sharply on the back of these announcements.
• Performing media attention or mentioned news: Renewed volatility in global financial markets happened after US President Donald Trump reiterated his promise to implement tariffs and announced that tariffs on Canada and Mexico would go into effect on April 2
• Trade Tensions: Trade tensions are escalating after indicatives of a possible 25% reciprocal tariff on European goods, as fears mount of European Union retaliatory action.
• Dollar Index: The dollar index, a measure of the dollar against a basket of six currencies, rose 0.19% and stood at 106.62.
• Crude Oil Prices: Brent crude, a global oil index, was at $72.75 per barrel. 

Tariff Deadline: The application (25%) of tariffs on goods from both Mexico and Canada — originally due on March 4 — has been postponed until April 2, somewhat curtailing the gains for the US dollar.

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