Rupee falls 6 paise to 88.16 towards U.S. greenback in early commerce

The rupee depreciated 6 paise to 88.16 towards the U.S. greenback in early commerce on Tuesday (September 2, 2025), weighed down by persistent international fund outflows and greenback demand.

Forex merchants mentioned on Monday, the rupee touched a report intraday low of 88.33 towards the greenback earlier than clawing again barely towards the shut.

The sharp fall underscores the pressure as India grapples with the steepest U.S. tariffs amongst Asian exporters — a headwind that continues to weigh on sentiment and forex stability.

At the interbank international trade market, the rupee opened at 88.14 towards the U.S. greenback, then fell to 88.16, registering a decline of 6 paise over its earlier shut.

On Monday, the rupee closed at an all-time low of 88.10 towards the U.S. greenback.

“Higher tariffs are eroding India’s export competitiveness. Foreign portfolio traders aren’t ready to see how this performs out: $2.4 billion has exited Indian equities over the previous three periods, forsaking volatility throughout each forex and fairness markets.

“Outflows of this scale not only strain the rupee but also cast doubts over near-term investment appetite,” CR Forex Advisors MD – Amit Pabari mentioned.

Meanwhile, the greenback index, which gauges the buck’s energy towards a basket of six currencies, rose 0.08% to 97.84.

Brent crude, the worldwide oil benchmark, was buying and selling 0.44% larger to $68.45 per barrel in futures commerce.

“The rupee faces resistance near 88.50, with support around 87.50. With U.S. tariff issues unresolved, risks remain skewed to the downside. Persistent foreign outflows or dollar strength could drive further weakness, while any recovery is likely to stay limited without clear trade relief,” Pabari mentioned.

On the home fairness market entrance, Sensex climbed 207.45 factors to 80,571.94 in early commerce, whereas the Nifty superior 60.8 factors to 24,685.85.

Foreign Institutional Investors offloaded equities value ₹1,429.71 crore on Monday, based on trade knowledge.

Meanwhile, U.S. President Donald Trump on Monday claimed that India has now “offered” to chop its tariffs to nothing, “but it surely’s getting late”, as he mentioned that India buys most of its oil and navy merchandise from Russia and little or no from the US.

“What few individuals perceive is that we do little or no enterprise with India, however they do an incredible quantity of enterprise with us,” Mr. Trump mentioned in a submit on Truth Social.