In the afternoon of February 25, the rupee dropped 55 paise as the dollar gained strength due to safe-haven movements following US President Donald Trump’s announcement that tariffs on Canada and Mexico will proceed as planned.
The rupee dropped from 86.85 to 87.25 due to changes in the RBI’s stance and month-end dollar demand over fixing, according to Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP.
Following a decline to 87.2525, the rupee was trading at 87.16 against the dollar in the afternoon. The rupee opened at 86.8500, 5 paise higher than the close of the previous session.
Other Asian currencies, in addition to the rupee, saw daytime depreciation against the US dollar. The Indonesian Rupiah is down 0.43%, the Thai Baht is down 0.52%, and the rupee is down 0.51% from the previous day’s closing, according to Bloomberg statistics.
The dollar index, which compares the value of the US dollar to six key international peers, increased to 106.769 in afternoon trading. At 106.596, the preceding session finished.
The dollar recovered some of its losses after plummeting to its lowest level in two months the day before, helped by safe-haven flows following Trump’s announcement that tariffs on Canada and Mexico were on track.
