Rupee weakened by 24 paise to 85.93 against the US dollar in early trade on Thursday, as renewed concerns over a global trade war, triggered by US President Donald Trump’s tariff policies, pressured currency markets and fuelled inflation fears.
The US dollar gained strength after Trump announced 25 per cent tariffs on automotive imports, set to take effect on April 2. Forex dealers noted that the rupee also faced pressure from liquidity constraints, concerns over reciprocal tariff measures, and month-end demand for the US dollar from importers. However, foreign fund inflows provided some support at lower levels.
At the interbank foreign exchange, the rupee opened at 85.90 against the greenback before slipping to 85.93, marking a 24-paise decline from its previous close. On Wednesday, the domestic currency had ended 3 paise higher at 85.69 per dollar.
According to Jateen Trivedi, VP Research Analyst for Commodities and Currency at LKP Securities, “Looking ahead, the rupee is expected to range between 85.25 and 86.25, with global cues, crude movement, and capital flows influencing its direction.”
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Given the current global and domestic market conditions, the USD/INR pair is expected to find strong support around 85.40-85.50, with a potential rebound toward 86.50 in the near term, according to Amit Pabari, MD of CR Forex Advisors.
Meanwhile, the US dollar index, which measures the greenback’s performance against six major currencies, was down 0.22 per cent at 104.32.
In commodity markets, Brent crude, the global oil benchmark, inched up 0.12 per cent to USD 73.88 per barrel in futures trade.
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Stock market summary
Indian equity markets opened lower on Thursday, mirroring weak Asian cues. At the opening bell, the Nifty50 index fell 0.15 per cent to 23,452.15, losing 34.7 points, while the 30-share Sensex dropped 0.08 per cent or 63.4 points to 77,225.1.
(With inputs from agencies)
