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Indian rupee depreciates amid dollar demand
Aug-26-2025

Indian rupee depreciated against the US dollar on Tuesday tracking weak domestic markets after the U.S. issued a draft notice on plans to implement an additional 25% tariff on Indian products. Some concern came with Fitch Ratings’ statement that the direct impact of higher U.S. tariff on Indian GDP will be modest as exports to the U.S. account for 2 percent of GDP, but tariff uncertainty will dampen business sentiment and investment. Additionally, sustained selling by foreign portfolio investors (FPIs) dampened investors’ sentiments. On August 25, Foreign Institutional Investors (FPI/FII) stood net sellers of Indian equities worth Rs 2,466 crore. On the global front, antipodean currencies such as the Australia and the New Zealand dollars weakened against their major currencies in the Asian session on Tuesday, as traders looked to cash in on the recent strong gains and remained cautious ahead of the release of key US economic data later in the week, including second quarter GDP and the US Fed's preferred readings on consumer price inflation. 

Finally, the rupee ended at 87.69 (Provisional), depreciated by 13 paise from its previous close of 87.56 on Monday. The currency touched a high and low of 87.80 and 87.63 respectively.

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