Rupee falls 22 paise to 86.44 against US dollar in early trade

Rupee weakens against US dollar due to market trends, Trump's tariffs, and foreign fund outflows, impacting oil prices.

The rupee depreciated 22 paise to 86.44 against the US dollar in early trade on Monday (January 27, 2025), weighed down by the strength of the American currency in the overseas market and a muted trend in domestic equities.

Forex traders said the Indian rupee gained on Friday (January 24, 2025) but opened on a lower note on Monday (January 27, 2025)as U.S. President Donald Trump’s tariffs uncertainty gained.

At the interbank foreign exchange, the rupee opened at 86.35 then fell further to 86.44 against the American currency, registering a decline of 22 paise over its previous close.

On Friday, the rupee appreciated 22 paise to close at 86.22 against the US dollar.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was at 107.67, higher by 0.21 per cent, after Trump threatened to apply 25 per cent Tariffs on Colombia after the plane carrying migrants was returned by the country.

Meanwhile, the US has paused sanctions and tariffs on Colombia after it agreed to accept all the terms of President Donald Trump, including accepting flights of deported migrants from America, the White House said.

The announcement comes after Mr. Trump and Colombian President Gustavo Petro threatened increased retaliatory tariffs after Petro turned away two US military aircraft full of detained Colombian migrants.