The rupee opened flat on September 3 at 88.1663 against the dollar as US tariff uncertainty continues. The currency had ended at 88.1600 against the greenback the previous day.
"Stalled trade negotiations with the US and heightened political uncertainty in major global economies are likely to keep risks skewed toward further weakness," said Amit Pabari, managing director at CR Forex Advisors.
The dollar index, which measures the greenback's strength against a basket of six major currencies, rose to 98.485 in the morning from the previous close of 98.397.
A day earlier, the rupee struggled to hold its ground, closing weaker despite a sharp intraday dip likely driven by the State Bank of India having raised up to $1 billion through a dollar-denominated bond issue.
Later, strong dollar demand from oil importers reversed the early gains, keeping the currency under pressure, experts said.
US President Donald Trump has dismissed claims that closer ties between China, Russia and their partners threaten America’s standing on the global stage.
Trump told reporters at the Oval Office he has a “very good relationship” with Chinese President Xi Jinping and that China “needs us much more than we need them”.
His comments came ahead of a massive military parade in Beijing on September 3 with Russian President Vladimir Putin and North Korea's Kim Jong Un among the leaders in attendance.
The “Victory Day” spectacle comes as Trump's "America First" stance and trade wars have strained Washington's long-standing alliances.
(with agency inputs)
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