Rupee falls 8 paise to 87.40 against U.S. dollar in early trade

Rupee falls to 87.40 against dollar due to foreign fund outflows, tariff uncertainty, and trade tensions.

The rupee declined 8 paise to 87.40 against the U.S. dollar in early trade on Tuesday (March 4, 2025), weighed down by persistent foreign fund outflows and a prevailing liquidity deficit.

Forex traders said the ongoing uncertainty surrounding tariff imposition by the U.S. has left financial markets in flux. Moreover, the tariff chaos has injected volatility and uncertainty into the U.S. Dollar Index.

At the interbank foreign exchange, the rupee opened at 87.38, then fell to 87.40 against the American currency, registering a decline of 8 paise over its previous close.

On Monday (March 3), the rupee settled with a gain of 5 paise at 87.32 against the U.S. dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was at 106.61, lower by 0.12%, amid escalating trade tensions, which have been triggered by US. President Donald Trump’s renewed tariff policies.

Brent crude, the global oil benchmark, quoted 0.63% lower at $71.17 per barrel in futures trade.

In the domestic equity market, the 30-share BSE Sensex was trading 175.61 points or 0.24% lower at 72,910.33 in morning trade, while Nifty was lower by 61.55 points or 0.28% to 22,057.75.