Rupee weakened by 23 paise to 85.73 towards the US greenback in early commerce on Wednesday, pressured by rising crude costs and considerations over potential reciprocal tariffs.
Foreign exchange merchants famous that the Indian rupee began the primary buying and selling session of the 2025-26 fiscal 12 months on a weak observe, with buyers intently monitoring the influence of former US President Donald Trump’s proposed tariff measures.
On the interbank overseas alternate, the rupee opened at 85.65 towards the greenback earlier than slipping additional to 85.73, marking a 23-paise decline from its earlier shut. On Friday, the rupee had gained 24 paise to settle at 85.50 towards the dollar.
The monetary markets remained closed on Tuesday for the annual checking account closing. A day earlier, on March 31, buying and selling in inventory, cash, commodity, and by-product markets was halted in observance of Eid-Ul-Fitr.
Over the 2024-25 monetary 12 months, the rupee depreciated by over 2 per cent. A 12 months in the past, on April 2, 2024, it was valued at 83.42 towards the US greenback. Nevertheless, in March 2025, the foreign money gained 2.17 per cent, marking its strongest month-to-month appreciation since November 2018, when it had surged over 5 per cent.
“All eyes will probably be on the imposition of reciprocal tariffs. Any imposition of tariffs on Indian items might put extra strain on the rupee, whereas aid from such tariffs would offer much-needed assist to the foreign money,” CR Foreign exchange Advisors MD Amit Pabari mentioned.
Trump, who has repeatedly slammed India and different nations for top tariffs on American items, is anticipated to introduce a set of reciprocal tariffs on April 2, calling it “Liberation Day” for the US.
Pabari added that the rupee might discover sturdy assist round 85.50-85.60, with a possible rebound in direction of 86.00-86.20 if market circumstances shift.
In the meantime, the greenback index, which tracks the dollar towards six main currencies, dipped 0.06 per cent to 104.19. Brent crude, the worldwide oil benchmark, edged up 0.03 per cent to USD 74.51 per barrel in futures commerce.
Inventory market abstract
International institutional buyers (FIIs) turned web sellers on Tuesday, offloading equities value Rs 5,901.63 crore, in response to alternate knowledge.
On the foreign exchange reserves entrance, India’s holdings rose by USD 4.529 billion to USD 658.8 billion within the week ending March 21, the Reserve Financial institution of India (RBI) reported. This marks the third consecutive weekly improve after a current decline because of revaluation and RBI interventions to handle rupee volatility.
