# Trump tariffs and FII outflows keeping Rupee weak despite dollar's sharp decline this year

> The rupee has depreciated about 3% in FY26 so far, despite a 7% fall in the dollar index in the fiscal year. Analysts blame US tariffs, persistent foreign institutional outflows and pressure to cut Russian crude imports. The Reserve Bank of India has tools to stabilise the currency and record forex reserves.

- Date: 2025-09-19 · published 2025-09-19T12:00:00.000Z
- Category: macro · region India · magnitude low
- Page: https://feedsoft.ai/events/23173-trump-tariffs-and-fii-outflows-keeping-rupee-weak-despite-dollar-s-sharp
- Commodities: [Indian Rupee (INR per USD)](https://feedsoft.ai/c/USDINR.md)

## Why it matters

The rupee is failing to benefit from broad dollar weakness, so import costs for dollar-priced feed and energy stay high for Indian buyers. The RBI's reserves and intervention limit the downside.

## Read by commodity

- USDINR: bullish ▲

## Sources

- moneycontrol.com: https://www.moneycontrol.com/news/business/rupee-weak-despite-a-soft-dollar-as-trump-s-tariffs-and-fii-outflows-weigh-13559718.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.