The Indian rupee was trading lower against the US dollar in early session. The scale of the move came back in renewed volatility for global financial markets after US President Donald Trump doubled down on his plans for tariffs against Mexico, Canada and the European Union.
Rupee's Performance
- On Friday, 28 February 2025, the rupee declined by 19 paise to 87.37 against the US dollar.
- The rupee had opened at 87.32 but subsequently dropped to 87.37.
- The rupee had earlier closed nearly flat at 87.18 against the US dollar for a marginal gain of 1 paisa on Thursday.
Reasons for Rupee Depreciation
- It has also been set against the backdrop of rising geopolitical tensions and the constantly lurking threat of trade wars
- Brisk demand for the American dollar
- Bearish outlook for domestic equities
- US Questions about Tariffs Dates uncertainty
Global Market Indicators
- The dollar index, which tracks the greenback against six other currencies, hit 106.621 in early trade
- It finished the last session at 106.416
- The dollar index stood at 107.35, up by 0.10 percent
- Brent crude, the international oil benchmark, was down 0.51 percent at USD 73.66 per barrel in futures trade
Additional Factors
- On net basis, insiders have sold equities worth ₹556.56 crore in the capital markets on Thursday.
- The possibility of aggravated tariffs has sent the world economy into a tailspin as shoppers express concern over rising inflation.
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