The Indian Rupee closed stronger against the US Dollar on Thursday, even after United States President Donald Trump slapped an additional 25% tariff on India for the purchase of Russian crude oil on Wednesday.
The local currency closed 3 paise stronger at 87.70 against the greenback compared to the previous close at 87.73. The rupee opened 5 paise stronger at 87.68 against the dollar on Thursday.
"Any rise will surely affect the Indian exports to the US, though the 25 basis point hike will be effective only from Aug. 28, before which the US delegation is expected into India to negotiate on tariffs," said Anil Kumar Bhansali, head of treasury and executive director of Finrex Treasury Advisors LLP.
Brent oil prices jumped to $67.52 per barrel. The Trump hike was in retaliation to buying Russian oil and thus funding Russia's war against Ukraine.
"Crude prices also benefitted from some bargain buying after sinking to 2-month lows on Wednesday amid persistent concerns over higher OPEC+ production and worsening demand across the globe," he added.
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