Rupee Falls 22 Paise to 87.41 Against US Dollar in Early Trade

The rupee opened at 86.67 and appreciated by one paisa in early trade on Thursday, but fell to 87.41 losing 22 paise in the next session. Forex traders shared that the latest tariff announcements from the US have left global markets in turmoil, subsequently strengthening the dollar. The rupee is registering a decline of 22 paise over its previous close. As the American Forex market opened, the local Indian Forex market tested the bottom opening the interbank foreign exchange at 87.26. Tuesday, the rupee suffered a rogue fall such that it settled at 87.19, losing 47 paise. The currency market and commodity markets shut down on Wednesday due to Mahashivratri.

Still, the delay in implementation of the 25 percent tariffs on goods from Mexico and Canada - initially scheduled for March 4 and now set for April 2 - is capping appreciation for the US dollar. 

Meanwhile, the dollar index, which measures the value of the dollar against a selection of six currencies, was at 106.62, up 0.19 percent from the previous day. 

In crude oil futures, global benchmark Brent crude was quoted 0.30 percent higher at $72.75 per barrel. 

“By virtue of the global economy facing headwinds, the USD/INR pair is likely to trade at higher levels with the dollar close to 87.50-87.60 and the rupee at 87.00 with strongest support at 87.00,” said Amit Pabari, MD of CR Forex Advisors. 

The domestic stock market saw the country’s benchmark 30-company stock index or BSE Sensex was up 11.84 points, or 0.02 percent , in the morning at 74,613.96, while Nifty fell by 1.50 points or 0.01 percent to 22,546.05. 

According to the exchange data, Foreign Institutional Investors (FIIs) net sold equities inferring a net outflow of investment from the capital markets for the amount of Rs 3,529.10 crore on Tuesday.