The rupee gained 34 paise to 84.96 against the US dollar in Friday morning trading. Emerging market currencies, including the rupee, benefited from the dollar’s widespread decline after Trump’s tariffs took effect. The decline in crude oil prices and the US dollar’s depreciation in foreign exchange markets are the main drivers of the rupee’s recovery.
Due to worries about inflationary pressures after tariffs and a possible U.S. recession, forex traders reported that the value of the US dollar declined.
The rupee started the day at 85.07 versus the US dollar at the interbank foreign exchange, but it increased 34 paise from its previous close to reach 84.96.
The dollar index, which compares the value of the US dollar to a basket of six other currencies, was down 0.42 percent at 101.64 this time. The benchmark for world oil, Brent crude, dropped 0.84 percent to USD 69.55 a barrel in futures trading.
India’s effective rate is at 27%, one of the lowest after the Philippines (17%), even though big export-driven economies are struggling with higher US levies. As a result, India’s competitive positioning is strengthened, and its currency is rather resilient.
According to exchange data, foreign institutional investors (FIIs) sold off stocks on Thursday for a net total of Rs 2,806.00 crore.
