Rupee Decline Against US Dollar: Fell 8 paise to 87.40

The rupee fell 8 paise to 87.40 against the US dollar in early trade on Tuesday. These were impacted by the ongoing net outflows of foreign funds and liquidity deficit. Later, the rupee closed for the day with a rise of 5 paise at 87.32 against the US dollar. The rupee opened at 87.38 and then dropped to 87.40 against the American dollar in the interbank foreign exchange.

Factors Influencing Rupee

US tariff imposition uncertainty continues to keep financial markets in a state of flux. The tariff issues have also added some volatility to the US Dollar Index. US President Donald Trump’s renewed tariff policy fueled trade tensions. President Trump announced that starting Tuesday, 25 percent taxes would be placed on imports from Mexico and Canada in order to combat trafficking in fentanyl, stop illegal immigration, end trade deficits and bring factories back to America.

Performance of Global and Domestic Markets

The dollar index stood at 106.61, 0.12% lower, as trade tensions. Futures were down 0.63 per cent at USD 71.17 barrel for Brent crude. The 30-share BSE Sensex was down 175.61 points or 0.24 per cent at 72,910.33 in morning deals, while Nifty dropped 61.55 points or 0.28 per cent to 22,057.75. On Monday, Foreign Institutional Investors (FIIs) sold equities worth Rs 4,788.29 crore from the capital markets.

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