Rupee Faces Pressure: Four Sessions of Decline Amid Global Tariff Tensions

The Indian rupee has declined for the fourth consecutive session, losing 45 paise to settle at 86.71 against the US dollar. Despite a cut in interest rates and falling crude oil prices, sentiment remains weak due to foreign fund outflows and global tariff tensions, particularly between the US and China.

The rupee continued its downward trajectory, falling for the fourth session to close at 86.71 against the US dollar, a decrease of 45 paise. This comes amid increased global tariff tensions, despite a 25 basis point reduction in interest rates by the Reserve Bank of India aimed at stimulating growth.

The Indian currency has faced pressure from foreign investor outflows and weak domestic equity markets. This persists even as global crude oil prices plummet and the dollar index shows weakness, according to forex traders. Over four trading sessions, the rupee has lost 104 paise.

Market analysts attribute the decline to ongoing US-China trade conflicts, exacerbated by new US tariffs. The RBI, while cutting the repo rate to 6%, has not directly intervened in the currency. The central bank has also adjusted the country's growth projection, citing global uncertainties.

(With inputs from agencies.)