Rupee Closes Stronger Against US Dollar
Rupee had opened slightly higher at 85.76 after Asian currencies showed some recovery in the morning.
Rupee closed 16 paise stronger against US Dollar at 85.70. The local currency had closed at 85.86 a dollar on Monday.
US President Donald Trump on Monday imposed 25% to 40% tariff on South Korea, Japan, Malaysia and other countries through tariff letters.
"Market sentiment remains fragile as investors fear disruption to global trade flows. Strong US employment data and dwindling hopes of Fed cuts provide additional support to the US Dollar," said Kunal Sodhani from FX Hub.
Rupee had opened slightly higher at 85.76 after Asian currencies showed some recovery in the morning and was expected to remain in a range of 85.40 to 86.00, according to Anil Kumar Bhansali, head of treasury and executive director of Finrex Treasury Advisors.
Sodhani had pinned 85.60 as the support, while 86.20 acted as the resistance for the Rupee and Dollar pair. The local currency on Monday, had slipped by nearly 58 paise after Trump had threatened a 10% extra tariff on BRICS.
The White House has sent a total of seven letters to various countries, with its corresponding tariffs. Countries like South Korea, Japan, Kazakhstan and Malaysia have been slapped with a 25% tariff. While countries like Laos and Myanmar see a heavier rate of 40%. South Africa has also been given a 30% tariff rate. According to the latest developments, these levies will be applicable from Aug. 1.
