MUMBAI: The Indian rupee ended lower for a fifth straight week, its biggest consecutive weekly drop in six months, as trade tensions between India and the United States escalated following President Donald Trump’s call for new tariffs on Indian goods.
The rupee closed marginally higher at 87.6550 against the US dollar, from 87.7025 on Thursday.
The currency opened at 87.5600 and reached an intraday high of 87.5350, supported by unwinding of long dollar positions in the NDF market.
Dollar bids, primarily from oil importers, pushed the USD/INR higher after initial lows, traders said.
For the week, the rupee eased 0.1%, following a 1.2% drop last week, and has depreciated nearly 3% over the past five weeks.
Rising pressure on the rupee was driven by India’s position among the hardest-hit countries in Trump’s trade offensive, including a new 25% tariff on Indian goods.
The move places India alongside Brazil, facing the steepest import duties, unsettling markets concerned about the impact on capital flows and investor sentiment towards Indian assets.
Fears of a record low in the currency prompted the Reserve Bank of India to intervene almost daily, preventing a deeper slide, traders said.
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