The Indian Rupee gained against US Dollar on Friday, as it strengthened by 5 paise to open at 86.84.
The domestic currency ended Thursday's trading session flat, closing at 86.89 against the US dollar, unchanged from its previous day's close. Despite opening stronger at 86.80, appreciating by 9 paise, the rupee ultimately ended the day unchanged, according to Bloomberg data.
The rupee's movement is also being influenced by US President Donald Trump's reciprocal tariff plans, which could significantly impact India, particularly sectors like food products, vegetables, textiles, and clothing. Trump's administration is considering imposing reciprocal tariffs on several trading partners, including India, Japan, and the European Union, which could take effect from April this year.
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%, after 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, and that 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, and is expected to open high, following the postponement of US President Trump's tariff plans to April 1.
The rupee is poised for a slow and steady ascent towards 88, once Prime Minister Modi returns from his US trip, Bhansali said.
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