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Rupee strengthens against US dollar amid Trump tariff tantrums
The rupee could be sold off as the day passes with dollar-buying sentiment continuing in the market, an analyst says.
The Indian Rupee rose against the US Dollar today, aided by sharp decline in crude oil prices and a weaker greenback due to US President Donald Trump's tariff tantrums.
At the interbank foreign exchange, rupee opened at 90.76 against the US dollar and then strengthened further to 90.73 — up 21 paise from its previous close of 90.94 on Friday. A positive start for India's stock market and an increase in forex reserves is supporting the currency, according to forex traders.
“The rupee opened stronger after the US Supreme Court's decision on tariffs caused the dollar index to fall,” Anil Kumar Bhansali, treasury head and executive director at Finrex Treasury Advisors LLP, told Press Trust of India. “Most Asian currencies have gained from their Friday close.”
He, however, said dollar buying sentiment continues in the market and could weigh on the rupee. “The rupee could be sold off as the day passes with dollar-buying sentiment continuing in the market,” he said.
The dollar index is was trading lower by 0.33% at 97.47, as is Brent crude—down 1.09% at $70.98 per barrel. India's forex reserves increased $8.663 billion to hit a new all-time high of $725.727 billion in the week ended 13 February 13, according to the Reserve Bank of India.
