The rupee fell by 22 paise to 87.41 against the US dollar in early trading on Thursday, as the latest tariff announcements from the US hit emerging market currencies, including the rupee.
According to forex traders, the recent tariff announcements from the US have had a negative impact on global markets, resulting in a stronger dollar.
The rupee opened at 87.26 against the dollar at the interbank foreign exchange, before slipping to 87.41, marking a decline of 22 paise compared to its previous close.
On Tuesday, the rupee had dropped by 47 paise to settle at 87.19 against the US dollar.
Equity, forex, and commodity markets remained closed on Wednesday for Mahashivratri.
Global financial markets experienced increased volatility as US President Donald Trump reiterated his commitment to tariffs, announcing that duties on Canada and Mexico would be imposed from April 2. He also hinted at a possible 25 per cent reciprocal tariff on European goods, raising concerns over a potential retaliatory response from the European Union.
However, the delay in imposing the 25 per cent tariffs on Mexican and Canadian goods, originally scheduled for March 4 but postponed to April 2, is limiting the dollar’s gains.
At the same time, the dollar index, which measures the greenback against a basket of six major currencies, stood at 106.62, up by 0.19 per cent.
Brent crude, the global oil benchmark, was trading 0.30 per cent higher at USD 72.75 per barrel in futures trade.
Amit Pabari, Managing Director of CR Forex Advisors, stated that the USD/INR pair is likely to remain at elevated levels, with strong support at 87 and resistance at 87.50-87.60, due to prevailing global challenges outweighing existing advantages.
In the domestic equity market, the BSE Sensex was trading 11.84 points, or 0.02 per cent, higher at 74,613.96 in morning trade, while the Nifty was down by 1.50 points, or 0.01 per cent, at 22,546.05.
Foreign Institutional Investors (FIIs) were net sellers of equities worth ₹3,529.10 crore in the capital markets on Tuesday, as per exchange data.
