The rupee gained 9 paise to reach 87.10 against the US dollar in early trading on Wednesday, supported by the general weakness of the US dollar and a decrease in crude oil prices. Foreign exchange traders attribute the dollar’s decline to the tariff escalation initiated by US President Donald Trump, which has had a ripple effect on global markets.
Despite the slight positive movement in the rupee, fears of an extended trade war are expected to keep the currency’s trajectory slightly negative. In interbank foreign exchange, the rupee began trading at 87.18 against the dollar before strengthening to 87.10, marking a 9 paise increase from its previous close. This follows a 13 paise gain for the rupee against the dollar in the previous trading session.
CR Forex Advisors MD Amit Pabari noted that the rupee is facing challenges from persistent foreign institutional investor (FII) selling, amounting to USD 128 million in the last session and totaling nearly USD 12 billion for the year. On the global front, the US dollar index, which measures the dollar against six major currencies, was down 0.07% at 105.67.
On the commodity front, falling crude oil prices, with Brent crude hitting a three-month low of $69.65 per barrel, are expected to ease India’s import burden and provide some support to the rupee. Brent crude was trading 0.41% lower at $70.76 per barrel in futures trading.
In domestic markets, the BSE Sensex was up 509.70 points, or 0.70%, at 73,499.63, while the Nifty rose 129.90 points, or 0.59%, to 22,212.55. FIIs sold equities worth ₹3,405.82 crore on a net basis on Tuesday.
US President Trump recently criticized high tariffs imposed by countries like India and China, calling them “very unfair.” He announced that reciprocal tariffs would be implemented starting next month. In February, Trump had indicated that reciprocal tariffs would be imposed on countries such as India and China.
