Rupee falls 8 paise to hit file low of 88.18 in opposition to U.S. greenback

The rupee declined 8 paise to shut at an all-time low of 88.18 (provisional) in opposition to the U.S. greenback on Tuesday (September 2, 2025), as Indo-U.S. commerce deal uncertainty and weak home fairness markets pressurised the native unit.

Forex merchants stated the rupee is buying and selling close to all-time low ranges as dangers remained skewed to the draw back amid uncertainty over U.S. commerce tariffs.

Moreover, persistent overseas fund outflows or greenback energy might drive additional weak spot, they added.

On Monday (September 1, 2025), the rupee revisited its all-time intra-day low of 88.33 in opposition to the American foreign money.

At the interbank overseas trade market, the rupee opened weak at 88.14 in opposition to the U.S. greenback, then misplaced additional floor to an intraday low of 88.20.

The rupee lastly settled for the day at 88.18 (provisional) in opposition to the U.S. greenback, down 8 paise from its earlier shut.

On Monday, the rupee closed at a file low of 88.10 in opposition to the U.S. greenback.

“We expect the rupee to trade with a slight negative bias as uncertainty over trade tariffs and weak domestic markets may pressurise the local unit. FII outflows and a positive tone in crude oil prices may further weigh on the domestic currency,” stated Anuj Choudhary, Research Analyst, Currency and Commodities, Mirae Asset ShareKhan.

Traders might take cues from ISM manufacturing PMI knowledge from the U.S. Investors might stay cautious forward of the non-farm payrolls report from the U.S. this week, Mr. Choudhary stated.

“Markets may also remain volatile ahead of U.S. President Donald Trump’s speech tonight. USD/INR spot price is expected to trade in a range of 87.80 to 88.50,” he added.

Meanwhile, the greenback index, which gauges the buck’s energy in opposition to a basket of six currencies, rose 0.63 per cent to 98.38.

Brent crude, the worldwide oil benchmark, was buying and selling 1.80 per cent increased to $69.38 per barrel in futures commerce.

On the home fairness market entrance, Sensex dropped 206.61 factors to settle at 80,157.88, whereas Nifty declined 45.45 factors to 24,579.60.

Meanwhile, Commerce and Industry Minister Piyush Goyal on Tuesday (September 2, 2025) stated India is negotiating a bilateral commerce settlement (BTA) with the United States.

India has already inked free commerce agreements with Australia, the UAE, Mauritius, the U.Okay. and the four-European nation bloc EFTA, he added.

India and the U.S. have been negotiating the pact since March. So far, 5 rounds of talks have been accomplished.

After a 50% obligation was imposed from August 27, the U.S. group has deferred its go to to India for the following spherical of talks, which was scheduled from August 25.

So far, no new dates have been finalised for the sixth spherical of negotiations.

Amid tensions between India and the U.S., Treasury Secretary Scott Bessent stated that on the finish of the day, the 2 nice nations will get this solved.