Representative imae | Image source: Reuters
The rupee depreciated at 24 Pace in early trading Thursday (March 27, 2025) to 85.93 as U.S. President Donald Trump’s tariff policy reignited concerns about a global trade war, heightened inflationary concerns and caused rippling effects across currency markets.
The dollar will take effect on April 2, after Mr. Trump announced a 25% tariff on auto imports late Wednesday (March 26, 2025).
Forex dealers say the rupee is also facing renewed pressure on liquidity restrictions, concerns over the implementation of reciprocity tariffs and monthly demand for U.S. currencies from importers.
However, foreign funds inflows support lower levels of rupees.
On the Interbank Forex Exchange, the rupee opened at 85.90 in the match against green, then lost the ground and hit 85.93, down 24 Pace from the previous closing.
On Wednesday (March 26, 2025), the rupee dropped 3 Pace against the US dollar at 85.69.
Given the current global and domestic market dynamics, the USD/INR pair is expected to find strong support around 85.40-85.50 and may rebound to 86.50 in the short term, Amit Pabari said.
Meanwhile, the U.S. dollar index measures the strength of the six currencies of Green Guard, down 0.22% to 104.32.
The global oil benchmark Brent crude oil company traded 0.12% higher, with futures trading at $73.88 per barrel.
In the domestic stock market, the 30-share BSE Sensex traded at 284.21 points, or 0.37%, above 77,572.71, while Nifty rose 73.50 points, or 0.31%, to 23,560.35.
Foreign Institutional Investors (FIIS) net bought Rs 22,4055 crore worth of shares on Wednesday (March 26, 2025), according to Exchange data.
publishing – March 27, 2025 at 11:03 am
