Rupee pares initial losses, settles 22 paise up at 85.30 against U.S. dollar

Rupee gains against US dollar as Trump imposes tariffs, India better-placed than competitors, commerce ministry examining implications.

The rupee pared its initial losses and settled for the day higher by 22 paise at 85.30 (provisional) against the U.S. dollar on Thursday (April 3, 2025) as the greenback weakened against its major peers after President Donald Trump unleashed reciprocal tariffs on about 60 countries.

The domestic unit had witnessed a knee jerk reaction in early trade but soon gained the lost ground and ended the day on a positive note, after the U.S. announced 27% reciprocal tariffs on India, saying New Delhi imposes high import duties on American goods.

Experts, however, said that India is better-placed than its competitors, who also face increased levies.

At the interbank foreign exchange, the rupee opened at 85.77 then touched an intraday high of 85.30 and a low of 85.78 against the greenback. The unit ended the session at 85.30 (provisional) against the dollar, registering a gain of 22 paisa from its previous closing level.

On Wednesday (April 2, 2025), the rupee had settled at 85.52 against the U.S. dollar.

The U.S. reciprocal tariffs are expected to impact India's exports of certain sectors to the U.S., experts said, adding that India is better-placed than its competitors, including Bangladesh (37%), China (54 per cent%), Vietnam (46%) and Thailand (36%) who face increased levies.

Meanwhile, according to an official statement on Thursday, the Department of Commerce is carefully examining the implications of the U.S. reciprocal tariffs on India and is engaged with all stakeholders, including domestic industry and exporters to seek their feedback on the issue.