Rupee rises 34 paise to 84.96 against U.S. dollar in early trade

Rupee strengthens against the dollar due to U.S. tariffs, oil price drop, and global trade concerns, impacting forex markets.

Rupee appreciated 34 paise to 84.96 against the U.S. dollar in early trade on Friday (April 4, 2025), as the greenback's broad-based weakness following the impact of U.S. President Donald Trump's tariffs offered relief to emerging market currencies, including the Rupee.

The key catalysts for the Rupee's rebound include the fall in crude oil prices and the weakness of the American currency in the overseas market.

Forex traders said the American currency weakened amid concerns surrounding inflationary pressures following the impact of tariffs and a potential recession in the United States. Moreover, retaliatory tariffs from trading partners could trigger a global trade slowdown, adding to recessionary fears.

At the interbank foreign exchange, the Rupee opened at 85.07 against the greenback, then gained ground and touched 84.96, up 34 paise from its previous close.

On Thursday (April 3, 2025), the Rupee settled at 85.30, higher by 22 paise against the U.S. dollar as the greenback weakened against its major peers after President Trump unleashed reciprocal tariffs on about 60 countries.

"The latest round of reciprocal tariffs was expected to boost the U.S. revenue, but the unintended consequences may be more severe. As higher import costs will ultimately burden consumers, potentially slowing economic growth," CR Forex Advisors MD Amit Pabari said.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.42% lower at 101.64. Brent crude, the global oil benchmark, fell 0.84% to $69.55 per barrel in futures trade.