Indian Rupee Market Brief: February 24, 2026 The Indian rupee faced downward pressure during Tuesday's trading session, closing lower at **90.87** against the US dollar. The currency remains caught between conflicting forces as global trade policy shifts and domestic equity sell-offs dictate market sentiment. Renewed uncertainty regarding US trade policy has weighed heavily on emerging market assets. Markets are currently digesting a series of tariff adjustments following a US Supreme Court ruling, with a temporary **15%** levy on various imports causing concern. While India's effective tariff rate is projected at a more favorable **11% to 13%** compared to regional peers, the broader climate of unpredictability has spurred dollar demand. Equity Market Drag The domestic equity market experienced a significant downturn, which directly impacted the rupee’s performance. The BSE Sensex plunged by **1,068.73** points to end at **82,225.92**, while the Nifty 50 dropped **288.35** points to settle at **25,424.65**. A sharp **4.74%** crash in the Nifty IT index was a primary driver for the sell-off. Concerns over automation and shifts in the global labor-arbitrage model led to heavy selling in major technology stocks. This sparked an outflow of capital as foreign investors turned cautious, increasing the local demand for the greenback. Central Bank and Reserves The Reserve Bank of India (RBI) continued its strategy of active intervention to prevent excessive currency volatility. Despite the rupee’s slip toward the **91** level, central bank actions helped cap deeper losses. India’s foreign exchange reserves remain a robust buffer, currently standing at **$725.7 billion**. This high level of reserves provides the RBI with significant ammunition to manage sharp fluctuations, even as the national trade deficit for January widened to **$34.7 billion**. Global Factors External pressures remain elevated as Brent crude oil prices hovered near **$72** per barrel. As a major oil importer, rising energy costs put additional strain on India's trade balance and the value of the rupee. The US Dollar Index (DXY) showed signs of resilience, trending toward the **98** mark. This strength, coupled with strong dollar demand in the non-deliverable forwards (NDF) market, created a challenging environment for local currency gains. Investors are now looking toward upcoming domestic GDP data and the evolving trade relationship with Washington to determine the rupee's trajectory in the coming weeks.