Rupee falls to 86.58/$ on tariff threats

MUMBAI: The rupee closed at 86.58 against the dollar, marginally weaker than the previous day’s 86.57, as early gains were erased due to a recovery in the dollar following tariff threats by US President Donald Trump. According to market sources, RBI likely intervened by selling dollars through public sector banks, while forward premiums dropped amid RBI’s buy/sell swaps.

After market hours, most emerging market currencies weakened against the dollar In global currency markets. The Mexican peso led the losses, declining 1.5%, as Trump’s tariff comments saw a rebound in the dollar index. The Canadian dollar also fell 0.8%. Meanwhile, Ukraine’s dollar bonds rallied on hopes of a peace agreement with Russia.