The rupee fell 19 paise in early trade to 87.39 against the dollar on February 27, as US President Donald Trump reaffirmed his tariff plans against Mexico and Canada and warned of 25 percent levies against the European Union, roiling the market again.
The home currency opened at 87.26 against a close of to 87 in the previous session.
The dollar index, which measure American currency's value against six major global peers, rose to 106.621 in the early trade. It ended the previous session at 106.416.
Global financial markets experienced renewed volatility as US President Donald Trump reaffirmed his commitment to tariffs, announcing that duties on Canada and Mexico would take effect on April 2, Amit Pabari, managing director at CR Forex Advisors, said.
Adding to trade tensions, Trump hinted at a potential 25 percent reciprocal tariff on European goods, escalating fears of a retaliatory response from the European Union. Trump ratcheted up rhetoric by saying the EU was created "to screw the United States", intensifying concerns of an impending trade conflict, Pabari said.
On February 25, the rupee logged its worst day in three weeks, falling 50 paise as the dollar edged up on safe-haven flows after Trump said tariffs against Mexico and Canada would go ahead as planned. Apart from the rupee, other Asian currencies also depreciated against the dollar that day.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
