Rupee Closes Stronger Against US Dollar

The Indian rupee strengthened by six paise, closing at 86.83 against the US Dollar on Friday. This marks an improvement from Thursday’s close of 86.896. The rupee’s performance reflects positive market sentiment and potential support from the Reserve Bank of India.

At market open on Friday, the domestic currency strengthened by 5 paise against the US Dollar, opening at 86.84.

On Thursday, the domestic currency ended flat at 86.89 against the US Dollar, unchanged from the previous day’s close. Despite an initial appreciation to 86.80, the rupee ultimately ended the day unchanged, according to Bloomberg data.

The rupee’s movement is being influenced by US President Donald Trump’s reciprocal tariff plans, which could significantly impact India, especially in sectors like food products, vegetables, textiles, and clothing. The Trump administration is considering imposing reciprocal tariffs on several trading partners, including India, Japan, and the European Union, potentially starting in April.

Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP, noted that the dollar index fell to 107.10, while US 10-year treasury yields dropped to 4.5380%, following some relief on inflation and tariffs. Bhansali also mentioned that the rupee is expected to open higher today at 86.78, with a range of 86.50-87.00. Exporters may sell near 87.50, while importers should wait for more dips to buy.

The Indian rupee briefly touched 86.92 but received robust support, likely from the Reserve Bank of India. It is expected to open high following the postponement of US President Trump’s tariff plans to April 1.

Bhansali added that the rupee is poised for a slow and steady ascent towards 88, once Prime Minister Modi returns from his US trip.