The Indian rupee is likely to extend weakness on Friday tracking weak cues from global equities although easing dollar overseas could limit downside. Global sentiment remains fragile due to tariff concerns and amid caution ahead of the upcoming quarterly earnings season. Benchmark indexes Sensex and Nifty rose around half a percent each on Thursday despite heightened uncertainty surrounding U.S. trade policy. Yesterday, rupee weakened by 5 paise to close at 85.74 against the US dollar as month-end dollar demand from importers, coupled with the greenback's recovery against major currencies, weighed on the rupee. The US dollar strengthened after US president Donald Trump announced long-promised 25 per cent tariffs on automotive imports, set to take effect on April 2. Meanwhile, rupee is also facing renewed pressure on liquidity constraints, concerns over reciprocal tariff implementations and month-end demand for the US currency from importers. Powered by Commodity Insights |