Wed Feb 12 04:27:40 UTC 2025: ## Rupee Rebounds, but Global Trade Tensions Cast Shadow
**Mumbai, February 12, 2025** – The Indian rupee strengthened for the second consecutive day, appreciating by 27 paise to close at 86.52 against the US dollar on Wednesday. This follows a significant 66 paise gain on Tuesday, its best single-day performance since March 3, 2023. The recovery is attributed to easing crude oil prices and interventions by the Reserve Bank of India.
However, the rupee’s gains were limited by volatile domestic equity markets, foreign fund outflows, and a strengthening US dollar fueled by escalating global trade tensions. The US recently imposed a 25% tariff on aluminum and steel imports, contributing to a 0.07% rise in the US dollar index to 107.91.
Brent crude oil prices dipped 0.31% to $76.36 per barrel. Domestically, the BSE Sensex fell 0.34%, and the Nifty declined 0.31%. Foreign institutional investors sold ₹4,486.41 crore worth of equities on Tuesday. While the rupee showed resilience, the ongoing global tariff war continues to pose a challenge to its stability.
First Piper 