₹ hits new low on additional tariff fears, foreign outflows

High bond yields have bearing on borrowing, says FM

- ANJALI KUMARI

The rupee hit a fresh low on Friday on the back of foreign outflows and worries around additional US tariffs, said dealers. However, the Reserve Bank of India (RBI) intervened in the foreign exchange market via dollar sales, which cut the rupee's losses.

The local currency depreciated by 0.13 per cent to settle at 88.26 per dollar, against the previous close of 88.15 per dollar. The rupee slipped to 88.37 per dollar during the day before regaining some ground by the end of the trade.

The Indian unit has been one of the worst performing Asian currencies so far in 2025, depreciating 3 per cent.

"The foreign outflows were because of additional tariff fears," said a dealer at a state-owned bank. "Nationalised banks were on (dollar) selling side, hence, we saw some reversal by the last hour," he added.