Tue Sep 02 04:40:53 UTC 2025: Here’s a summary and a rewritten news article based on the provided text:

**Summary:**

The Indian Rupee (INR) weakened against the U.S. dollar (USD) in early trading on September 2, 2025, reaching a low of 88.16. This depreciation is attributed to consistent foreign fund outflows driven by concerns over steep U.S. tariffs impacting India’s export competitiveness. Foreign portfolio investors have withdrawn significant capital from Indian equities, exacerbating market volatility. While the Indian stock market (Sensex and Nifty) showed gains in early trading, the overall outlook for the Rupee remains negative due to unresolved tariff issues and continued dollar demand. US President Trump claims India has offered to cut tariffs to nothing, but it may be too late since India buys oil and military products from Russia.

**News Article:**

**Rupee Slides to New Low Amid Foreign Fund Outflows, U.S. Tariff Concerns**

**Mumbai, September 2, 2025:** The Indian Rupee (INR) depreciated further against the U.S. dollar (USD) in early trading today, reaching 88.16, a drop of 6 paise. This decline is primarily fueled by persistent outflows of foreign funds and heightened demand for the dollar. Concerns surrounding the impact of steep U.S. tariffs on Indian exports continue to weigh heavily on investor sentiment.

The Rupee had previously touched an intraday low of 88.33 on Monday before recovering slightly. Forex traders cite the U.S. tariffs as a significant headwind eroding India’s competitive edge. Over the past three sessions, foreign portfolio investors have pulled out $2.4 billion from Indian equities, creating instability in both currency and equity markets.

“Outflows of this scale not only strain the rupee but also cast doubts over near-term investment appetite,” said Amit Pabari, MD of CR Forex Advisors. He further warned that the Rupee faces resistance near 88.50 and is likely to remain under pressure unless there is clear relief on the trade front.

Despite the Rupee’s weakness, the Indian stock market showed signs of resilience in early trade. The Sensex climbed 207.45 points to 80,571.94, while the Nifty advanced 60.8 points to 24,685.85. However, data reveals that Foreign Institutional Investors (FIIs) offloaded equities worth ₹1,429.71 crore on Monday.

Adding to the economic complexity, U.S. President Donald Trump claimed yesterday that India has offered to eliminate its tariffs, but he suggested it might be too late, noting that India primarily sources its oil and military products from Russia and trades very little with the US. The situation remains fluid, and traders are closely monitoring global cues and developments in U.S.-India trade relations.

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