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The rupee depreciated 24 paise to 85.93 against the U.S. dollar in early trade on Thursday (March 27, 2025), as U.S. President Donald Trump’s tariff policies reignited fears of a global trade war, fuelling inflation concerns and causing ripple effects across currency markets.
The U.S. dollar strengthened after Mr. Trump on late Wednesday (March 26, 2025) announced long-promised 25% tariffs on automotive imports, set to take effect on April 2.
Forex dealers said the rupee is also facing renewed pressure on liquidity constraints, concerns over reciprocal tariff implementations and month-end demand for the U.S. currency from importers.
However, foreign fund inflows supported the rupee at lower levels.
At the interbank foreign exchange, the rupee opened at 85.90 against the greenback, then lost ground and touched 85.93, down 24 paise from its previous close.
On Wednesday (March 26, 2025), the rupee settled higher by 3 paise at 85.69 against the U.S. dollar.
Given the current global and domestic market dynamics, the USD/INR pair is expected to find strong support around 85.40-85.50, with the potential for a rebound towards 86.50 in the short term, CR Forex Advisors MD – Amit Pabari said.
Meanwhile, the U.S. dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.22% lower at 104.32.
Brent crude, the global oil benchmark, was trading 0.12% higher at $73.88 per barrel in futures trade.
In the domestic equity market, the 30-share BSE Sensex was trading 284.21 points, or 0.37%, higher at 77,572.71, while the Nifty was up 73.50 points, or 0.31%, at 23,560.35.
Foreign institutional investors (FIIs) purchased equities worth ₹2,240.55 crore on a net basis on Wednesday (March 26, 2025), according to exchange data.
Published – March 27, 2025 11:03 am IST
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