The Indian rupee is likely to extend its sharp slide amid global sell-off in equities although dollar weakness and lower international crude oil prices could limit downside in the counter. U.S. stocks tumbled on Monday and the major averages all closed sharply lower, with the tech-laden Nasdaq recording a more pronounced losses. Uncertainty about President Donald Trump's tariff moves, fears of a recession in the world's largest economy, and weak global growth outlook weighed on investor sentiment. Yesterday, rupee depreciated by 38 paise, a near one-week low, to close at 87.33 against the US dollar due to tariff uncertainties worldwide and unabated outflow of foreign funds. Indian shares ended slightly lower on Monday, failing to hold early gains due to uncertainty surrounding U.S. tariffs and signs of deepening deflationary pressures in China. The benchmark 30-share BSE Sensex fluctuated before ending the session down 217.41 points, or 0.29 percent, at 74,115.17. The broader NSE Nifty index closed at 22,460.30, down 92.20 points, or 0.41 percent, from its previous close.

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