Rupee falls for fifth session on tariff worries; ends lower at 87.69/$

Indian Rupee today: The domestic currency closed 11 paise lower at 87.69 against the dollar on Tuesday, according to Bloomberg

The Indian rupee fell for a fifth straight session on Tuesday as sentiment weakened with traders and exporters bracing for the additional 25 per cent tariffs to kick in. 

 

The domestic currency closed 11 paise lower at 87.69 against the dollar on Tuesday, according to Bloomberg. The Rupee has slipped 2.5 per cent in the current financial year and 2.39 per cent in 2025 so far. In August, it fell around 0.11 per cent against the dollar.

 

The weakness in the currency comes after a draft notice from the US Department of Homeland Security, which outlined plans by US President Donald Trump to impose a 50 per cent tariff on Indian products. The increased levies are set to apply to Indian goods "entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 AM Eastern Daylight Time on 27 August 2025." 

 

 

Meanwhile, the dollar dropped as the feud between US President Donald Trump and the Federal Reserve intensified. The President moved to fire Fed Governor Lisa Cook on allegations that she falsified documents on mortgage applications. The sentiments also worsened after Trump threatened to place export curbs on chips in retaliation against other nations' digital services taxes. 

 

The dollar index, a measure of the greenback against a basket of six major currencies, was down 0.14 per cent at 98.29.

 

In commodities, crude oil prices eased in Asian trading, giving up some of their previous gains as traders weighed the prospects of additional US sanctions on Russia. Brent crude price was down 1.48 per cent at 67.78 per barrel, while WTI crude prices were lower by 1.65 per cent at 63.73 per barrel, as of 3:35 PM IST. 

 

The currency market will be closed on Wednesday, 27 August, in observance of Ganesh Chaturthi.