The Indian rupee closed slightly higher on Friday after opening flat at the beginning of the trading session. The local currency ended 1.16% weaker for the week, the fourth consecutive weekly loss.
The rupee closed 6 paise stronger at 87.54 against US dollar versus its Thursday closing at 87.6 a dollar.
The domestic currency traded in the range of 87.35 to 88 throughout the day. Anil Bhansali, executive director at Finrex Treasury Advisors LLP, advised exporters to hedge their receivables, while importers were advised to wait to buy at the day's lowest level on a cash basis.
"The RBI appears to be actively managing the rupee's decline, and if this support continues, we may see levels closer to 87 in the near term,” Bhansali added.
The rupee came under pressure in the last couple of days after Trump introduced a surprise blanket tariff of 25% on Indian imports, down just 1% from the previous liberation day tariff of 26%. The US president, however, later on a social media post on Truth Social, said the bilateral talks are still on for a potential deal breakthrough.
Rupee coming under pressure also aligns with its Asian peers as they edged lower following the greenback's surge on the heels of the Fed's policy decision to keep the lending rate unchanged.
The dollar index climbed to 100.13 during morning trade, bolstered by fresh US tariffs imposed by President Donald Trump on several trading partners, including a hike from 31% to 39% on Swiss exports, which pressured the Swiss franc, he added.
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