Rupee Weakens Sharply Against US Dollar

The rupee closed sharply lower against the greenback as demand for the safe-haven unit persisted in the wake of tariff outlook uncertainty. The rupee closed 32 paise weaker at 87.52 against US Dollar.

The Indian currency had opened 12 paise weaker at 87.32 against US dollar. During the last leg of the trade, the Indian unit slumped 35 paise to 87.55 against the US dollar.

The ongoing uncertainty surrounding tariff imposition has left financial markets in flux, said Amit Pabari, managing director, CR Forex Advisors. US President Donald Trump initially announced that tariffs on Mexico and Canada would take effect on Feb. 1, only to postpone them by 30 days. Subsequently, he declared that the tariffs would be enforced on April 2, but moved the date forward to March 4, he noted.

The dollar index, which measures the strength of the greenback against the six major currencies, rose to the day's high of 107.45.

Further, a slump in domestic equity markets also weighed on the Indian unit. The NSE Nifty 50 and BSE Sensex ended 1.86% and 1.90% down, respectively.