Fri Feb 28 10:51:08 UTC 2025: ## Rupee Slides 28 Paise Against Dollar Amidst Global Tariff Uncertainty and FII Sell-Off
**Mumbai, February 28, 2025** – The Indian rupee depreciated by 28 paise against the US dollar on Friday, closing at 87.46, driven by a strengthening dollar, negative domestic equity trends, and ongoing uncertainty surrounding US tariff plans. Foreign institutional investors (FIIs) further fueled the decline by offloading equities worth ₹556.56 crore on Thursday.
The rupee’s fall comes amidst President Trump’s announced plans to impose new tariffs on Canada and Mexico, adding to existing tariffs on Chinese imports. This escalating trade war has injected volatility into the US Dollar Index, which rose 0.08% to 107.33. The uncertainty has also led to increased dollar demand from importers, further impacting the rupee.
In response to the market volatility, the Reserve Bank of India (RBI) conducted a $10 billion US dollar-rupee swap to inject long-term liquidity into the system. The settlement for this swap is scheduled for March 4th and 6th.
Domestic equity markets also experienced significant losses, with the BSE Sensex falling 1.90% to 73,198.10 and the Nifty dropping 1.86% to 22,124.70. Brent crude also declined, falling 0.74% to $73.49 per barrel. The global economic uncertainty and threat of inflation are contributing factors to the widespread market downturn.
First Piper 