Rupee trades below 88 mark amid weak dollar; opens 25 paise stronger

Indian Rupee today: The domestic currency opened 25 paise higher at 88.01 against the greenback on Tuesday

The Indian Rupee traded higher and sliped below the 88 mark on Tuesday, tracking gains in Asian peers and a fall in dollar index. 

 

The domestic currency opened 25 paise higher at 88.01 against the greenback on Tuesday, according to Bloomberg. In opening deals, the currency rose to 87.97 level. So far this year, the rupee has depreciated 2.76 per cent, making it the worst performer among Asian peers.

 

The currency, which closed at 88.27 on Friday, is expected to open stronger on Tuesday, analysts said. However, the rupee may remain under pressure due to concerns over United States tariffs on India and global uncertainty. 

 

   

Recent record lows have raised the possibility of Reserve Bank of India (RBI) intervention to limit losses, Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP. The rupee has weakened about 0.34 per cent month-on-month, with further downside risks if uncertainty and tariff concerns persist, he said.   

 

Commerce Minister Piyush Goyal has indicated that a resolution on tariffs could come by November 2025, while Finance Minister Nirmala Sitharaman said the government is monitoring the rupee closely and support measures for exporters are being prepared, Bhansali said. 

 

"The rupee slide is largely against the dollar, not against any other currencies. That's also because of the way globally, the dollar has strengthened," Finance Minister said in a recent interview when asked if the slide of rupee against greenback is a concern. "This is not the case only with rupee versus dollar, it's the case with many other currencies versus the dollar. So we are keeping a good watch on this," she told PTI in an interview.

 

Global funds have been net sellers in stocks in the first six days of September and have sold equities worth ₹1.42 trillion so far this year, according to NSDL data. 

 

The dollar index, a measure of the greenback against a basket of six major currencies, was down 0.04 per cent at 97.41. 

 

Meanwhile, Indian government bonds are trading with a slightly positive bias as fiscal concerns have eased following smaller-than-expected revenue loss from recent tax cuts, and lower US yields are also providing support. 

 

In commodities, curde oil prices were trading higher after Opec+ raised output for October by 1,37,000 barrels, less than expected. Brent crude price was up 0.48 per cent at 66.34 per barrel, while WTI crude prices were higher by 0.48 per cent at 62.56 per barrel, as of 9:02 AM IST.