Rupee falls 7ps to 89.94/$

Mumbai: The rupee fell 7paise to settle at 89.94 (provisional) against the US dollar, weighed down by a host of factors, including higher crude oil prices, foreign fund outflows, and a stronger greenback. The apprehension of any further tariffs by the US and weak sentiments at the domestic equity markets further pressured the local unit, forex traders said.

At the interbank foreign exchange, the rupee opened at 89.96 and traded in the range of 89.73 to 90.13. It eventually settled at 89.94 (provisional), down 7paise from its previous close. “India faces big trouble on its exports if the US increases tariffs by even 10 bps, as sentimentally it changes from ‘the deal in pipeline’ to ‘back to square one’.

RBI shorts in the markets will keep the dollar buying sentiment,” Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said. The rupee is expected in the range of 89.80 to 90.30 on Friday, he said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.02 per cent higher at 98.70. Foreign institutional investors offloaded equities worth Rs 1,527.71 crore on Wednesday, according to exchange data.

The government, in its latest estimate on Wednesday, projected the country’s GDP to grow by 7.4 per cent in the current fiscal year, maintaining its status as the world’s fastest-growing major economy despite punitive US tariffs and geopolitical tensions.

The First Advance Estimates released by the Ministry of Statistics and Programme Implementation put GDP growth in 2025-26 at better than 7.3 per cent, forecast by the RBI and the government’s initial projection of 6.3-6.8 per cent.