Due to ongoing tariff uncertainties, the rupee opens unchanged at 88.16 against the dollar.

Due to the ongoing uncertainty around US tariffs, the rupee began flat versus the dollar on September 3 at 88.1663. The day before, the currency had closed at 88.1600 versus the US dollar. "Risks will likely remain skewed toward further weakness due to the stalled trade negotiations with the US and increased political unpredictability in major global economies," stated Amit Pabari, managing director of CR Forex Advisors. Morning trading saw the dollar index, which gauges the strength of the US dollar relative to a basket of six major currencies, rise from the previous close of 98.397 to 98.485. Despite a steep intraday decline that was probably caused by the State Bank of India raising up to $1 billion through a dollar-denominated bond issue, the rupee had a hard time holding its ground the day before and ended the day lower. The early gains were later undone by oil importers' strong dollar demand, which kept the currency under pressure, according to experts. The rupee opened unchanged at 88.1663 against the US dollar on September 3, reflecting the cautious sentiment prevailing in the market amid ongoing tariff-related uncertainties with the United States. The previous day, the currency had settled at 88.1600, but analysts believe the lack of progress in trade negotiations and heightened global political risks are preventing the rupee from gaining traction. According to market experts, risks continue to lean toward further weakness in the domestic currency unless there is greater clarity on external developments. In early trade, the dollar index, which tracks the performance of the US dollar against six major global currencies, rose slightly to 98.485 from its earlier close of 98.397. The uptick in the dollar index underscored the greenback’s resilience, making it harder for the rupee to recover. A stronger dollar often exerts pressure on emerging market currencies, and the rupee is no exception, especially when compounded by trade and geopolitical uncertainties. The previous session highlighted the rupee’s vulnerability when the State Bank of India announced plans to raise up to $1 billion through a dollar-denominated bond issue. This move triggered a sharp intraday decline, as it raised immediate demand for the greenback. Although the rupee briefly attempted to recover, heavy dollar demand from oil importers erased those gains and pushed the currency lower by the end of the session.