Rupee slips by 51p to 87.2 vs $, steepest fall in 3 weeks – The Times of India

MUMBAI: The rupee fell 51 paise to close at 87.2 per US dollar on Tuesday, marking its sharpest decline in three weeks. The domestic currency slid 0.6% in a single session, its steepest fall since Feb 5, as regional currency weakness, importer hedging, and dollar demand weighed on it.
The decline was driven by dollar demand linked to the expiry of non-deliverable forward (NDF) contracts, leaving little room for appreciation. Weak sentiment in Asian markets added to the pressure, while RBI is believed to have intervened to limit losses.
The dollar index rebounded to 106.8 after hitting a two-month low of 106.4.
Most Asian currencies weakened as risk appetite waned, with renewed concerns over US tariffs. President Donald Trump announced restrictions on Chinese investments in strategic sectors and confirmed that tariffs on Canada and Mexico would take effect next week, despite earlier indications of a temporary pause. The uncertainty around US trade policy is expected to keep the rupee volatile.
Analysts said the rupee, still considered overvalued, could depreciate further to 89 per US dollar, with the pace of decline depending on RBI’s interventions and foreign outflows. The currency also came under pressure from continued FII selling, with net equity outflows reaching Rs 3,529 crore on Tuesday.
Brent crude prices slipped 0.1% to $74.7 per barrel. Currency markets will remain closed on Wednesday for Mahashivratri. With month-end importer demand and futures contract expiries adding to the pressure, market participants remain cautious about the rupee’s trajectory.