Rupee Opens Stronger After Trump Rolls Out Fresh Tariffs On Six Nations

Rupee opened six paise stronger against US Dollar at 85.61. It closed at 85.67 against the greenback on Wednesday. This comes after US President Donald Trump escalated his tariff campaign by posting new letters on his social media platform, Truth Social.

He targeted six additional countries—Algeria, Iraq, Libya, Brunei, Moldova, and the Philippines—with fresh import duties ranging from 20% to 30%. Anil Kumar Bhansali, head of treasury and executive director of Finrex Treasury Advisors LLP, expects the Rupee to trade in the range of 85.50 to 86.00.

Exporters are advised to hedge near 86.00 and importers may hedge for near term at 85.30 and below, according to Bhansali.

"Rupee rose to 85.6725 yesterday despite a fall in stock markets, with FPI being buyers of equity and sellers of dollars. It is set to open flat today morning as FPIs may continue to be buyers of equity and accordingly sellers of dollars," he said.

The range mentioned above should hold and exporters should take the opportunity of any uptick to the pair to sell dollar. While, importers can buy at 85.50 and below if we get these levels today, he added.

"Market sentiment is getting battered by renewed tariff threats from the Trump administration. Fed Minutes solidify expectations for a September rate cut amid concerns of rising inflation from tariffs. For Dollar Rupee pair, 85.50 acts as a support while 85.95 a resistance," according to Kunal Sodhani from FX Hub.

Brent oil fell to $70.08 per barrel as the latest tariff announcements by President Donald Trump were perceived by the investors as a threat to Global Economic Growth and accordingly demand for the oil.

Policymakers are worried about inflationary pressures from these tariffs with only a couple of officials from Fed feeling that interest rates could be reduced as per the minutes of June 17-18 meeting. Higher interest rates make borrowing expensive and reduce demand for oil.