Rupee Climbs to 87.10 vs US Dollar, Gaining 9 Paise Amid Trump's Tariff Escalation

Rupee Climbs to 87.10 vs US Dollar: The rupee showed minor strength against the dollar as it edged up marginally by 9 paise to 87.10 in early trades. The USD depreciation and softening crude oil prices were the main reasons for this improvement. The local currency had opened at 87.18 in the interbank foreign exchange against the US dollar and was in touch with 87.1, having earlier closed with a gain of 13 paise at 87.19 on Tuesday from an opening low due to recovery from losses sustained earlier on.

Also Read: Mani Shankar Aiyar Sparks Controversy: ‘Rajiv Gandhi Failed at Cambridge & Imperial College, Became PM’

Key Factors to Watch for the Movement of the Rupee

The USD is on a downward spiral after the US president Trump escalated tariffs, sending waves through global markets, said leading forex traders to New Networks. Therefore, traders have anticipated that the rupee should have a faint negative tilt after the initial higher runs, further-up interspersed with thought on trade war worries.

The Credit of FII Movement Unknown to the World

While talking about the world uncertainty due to 'Trump factor', the rupee was gouged to spiral in either small ranges, said Amit Pabari, M.D., CR Forex Advisors. Further downside was added to the rupee due to FIIs' self-sold above $12 billion this year alone, and selling $128 million on the last session due to rising geo-political tensions. The FII net selling on Tuesday based on the preliminary data from the exchanges was ₹ 3,405.82 crores.

Also Read: New Delhi NCR DDA to Build 10,000 Flats for Slum Dwellers – Read Full Details Inside

Falling Crude Oil Prices Helped

Declining crude oil prices have provided a crutch for the Indian currency. With Brent crude witnessing a three months low at $69.65 per barrel, this is expected to diminish India's import bill, thereby supporting the rupee. Internationally, Brent was trading at $70.76 a barrel, down 0.41 percent in the futures market.

The US Dollar Index and Equity Markets Meanwhile

At 105.67, the dollar index was down 0.07 percent measuring greenback price against six currencies. In the domestic market, the BSE Sensex 30 was trading at 73,499.63 points, up 509.70 points or 0.70 percent, while the Nifty was up at 22,212.55 points, up by 129.90 points or 0.59 percent.

US President Donald Trump blasted high tariffs imposed by Lakshadweep India and other states including China as "very unfair." This would take effect from April 2. Trump in February had reaffirmed his administration's target of imposing reciprocal tariffs against other nations including India and China.

Also Read: New Delhi Station Stampede: Railways Court Rejects Passengers' Refund Demands