New Delhi, February 27, 2025.
The rupee fell sharply by 51 paise to settle at 87.21 against the US dollar on Tuesday due to month-end dollar demand by importers and capital outflows amid uncertainty over US trade tariffs.
Jateen Trivedi, Research Analyst, LKP Securities, said, “rupee traded very weak as FII sell-off continued and crude oil prices remained elevated amid US tariffs on Iran, which pushed oil demand higher. The dollar index at 106.65 also added to the pressure on the rupee.”
With continued capital outflows and rising crude prices, rupee weakness is likely to persist despite intervention by the RBI. “Support is seen near 87.45, while resistance remains at 86.85. Market focus remains on global risk sentiment, oil price trends and central bank policy signals,” he said.
Foreign investors have pulled out Rs 46,792 crore from Indian stocks in February so far.
