Rupee Ends At Nearly One-Week Low Against US Dollar

The rupee ended near one-week low against the US dollar on Monday, amid persistent demand for the greenback as risk-off sentiment increased among investors on tariff fears. It ended 45 paise lower at 87.33 against US Dollar, the lowest level since March 4.

The Indian currency settled at 86.88 a dollar on Friday.

The Indian unit opened 39 paise lower at 87.27 against US dollar, despite a fall in dollar index and crude oil prices, as uncertainty compelled investors to flock to safe-haven unit. This happened as India is trying to chalk out a bilateral trade agreement with the US.

Moreover, the dollar index started to retreat from four-month low in European session which weighed on the Indian unit. The index was trading 0.12% down at 103.71 as of 3:33 p.m., according to data on Bloomberg.

The dollar index hovered near a four-month low during open, after sliding over 3% last week, driven by US economic concerns. US President Donald Trump described the economy as in 'a period of transition' amid escalating trade tensions following new US tariffs on Mexico, Canada, and China, said Ritesh Bhansali, director, Mecklai Financial Services Ltd.

"Meanwhile, weaker-than-expected job data showed the US added 151,000 jobs in February, slightly below forecasts of 160,000 with unemployment rising to 4.1% and wage growth slowing to 0.3%. Consumer inflation data from the US and India, due on Wednesday, will be in focus as they will influence expectations of rate cuts by the countries' central banks," Bhansali said.