Rupee ended the day at 87.21 against the US dollar, depreciating by 2 paise due to a subdued trend in the domestic markets and continuous foreign fund outflows. The latest tariff announcements by the US caused global market shockwaves, leading to a strengthening of the dollar. Additionally, month-end dollar demand also contributed to the dollar’s rise.
Starting at 87.26, the rupee fluctuated throughout the day, reaching a high of 87.12 and a low of 87.41 before closing at 87.21 against the dollar. This marks a 2 paise loss compared to the previous day’s close. Yesterday, the rupee had dropped by 47 paise to settle at 87.19 against the US dollar.
Market closures on Wednesday, for Mahashivratri, impacted equity, forex, and commodity markets. Analysts anticipate a negative bias for the rupee due to weak domestic markets and ongoing FIIs outflows. Interventions by the RBI and fluctuations in crude oil prices may provide some support to the rupee. Traders are advised to monitor US GDP data and remain cautious ahead of the core PCE price index data.
The dollar index stood at 106.59, reflecting a 0.17% increase in the greenback’s strength against a basket of currencies. Brent crude rose by 1.02%, reaching $73.27 per barrel in futures trade.
In the domestic stock market, the BSE Sensex declined by 10.31 points to 74,612.43, while the Nifty fell by 2.50 points to 22,545.05. FIIs offloaded equities worth ₹3,529.10 crore on a net basis on Tuesday.
Globally, financial markets saw increased volatility as President Trump reiterated his commitment to tariffs. The announcement of duties on Canada and Mexico from April 2, along with hints of reciprocal tariffs on European goods, raised concerns. However, the postponement of the tariffs on Mexican and Canadian goods limited the dollar’s gains.
