Rupee falls to 90.03 against the US dollar amid 500% US tariff risk

The rupee witnessed increased volatility on Tuesday, with briefly strengthening to 89.74 per dollar due to intervention by the Reserve Bank of India (RBI) via dollar sales, but persistent dollar demand, driven by proposed steep US tariffs of 500 per cent, coupled with sell-off in equity markets led to depreciation of the local currency by the end of the trade. 

The rupee settled at 90.03 per dollar, against the previous close of 89.89 per dollar. It has depreciated by 5.06 per cent in the current financial year so far. In 2026 so far, it has fallen by 0.17 per cent. “The RBI was intervening for the past two sessions to keep rupee below 90 per dollar, however, the 500 per cent tariff statement by Trump led to outflows from equities and it also affected the sentiments,” said a dealer at a state-owned bank. 

The central bank’s short positions and dollar demand among foreign portfolio investors further put pressure on the currency. The local currency fell up to 90.13 per dollar during the day. 

“Though RBI came intermittently to sell dollars at 89.99 per dollar and took it down to 89.73 per dollar the dollar buying continued and ultimately brought back rupee to 90.13 per dollar where RBI must have again sold and closed a bit higher from today’s low,” said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP.