Rupee Declines by 6 Paise, Closing at 87.12 Against US Dollar
On March 6, 2025, the Indian Rupee fell by 6 paise to settle at 87.12 against the US Dollar. This decline came after a three-day rally where the Rupee had gained 18 paise over the preceding two sessions. The Rupee’s performance was influenced by several factors, including uncertainty over trade tariffs and persistent foreign fund outflows.
In the initial trade, the Rupee gained momentum after the US delayed the implementation of higher tariffs on imports from Canada and Mexico. Additionally, the Reserve Bank of India’s decision to infuse ₹1.9 trillion liquidity into the banking system provided some support. However, the Rupee later turned volatile and hit a low of 87.16 before ending the session at 87.12.
Forex traders noted that investors were cautious, awaiting the weekly unemployment claims data from the US and the monetary policy announcement by the European Central Bank. While a positive equity market, weakness of the American currency in the overseas market, and easing crude oil prices contained the losses for the Rupee, selling pressure by Foreign Institutional Investors (FIIs) contributed to the decline.
