Currency Market News: Rupee falls 26 paise to 85.78 vs dollar after US slaps tariffs on India
Rupee dropped 26 paise to 85.78 against the US dollar on Thursday morning after US President Donald Trump imposed tariffs on nearly 60 countries, including India. The US has introduced a 27 per cent tax on Indian imports, arguing that India charges high duties on American goods.
The tariffs being implemented were conceived as part of Trump’s plan to reduce the US trade deficit and to rejuvenate manufacturing at home.
Though expected to adversely affect India’s exports to US, experts feel that India is in a relatively better position compared with many other countries that face similar tariffs. Traders claimed that Trump’s protectionist policies sent shock waves through the market, forcing investors toward safer assets.
Also Read:Currency Market News: Rupee remains range-bound, ends 2 paise lower at 85.52 vs dollar
At the foreign exchange market, the rupee started at 85.77 per dollar before slipping to 85.78, marking a 26-paise loss from Wednesday’s close of 85.52. Some analysts fear that rising trade tensions could lead to a full-scale trade war, which may slow down the global economy.
Meanwhile, the US dollar weakened, with its index dropping 0.72 per cent to 103.06 against a basket of six major currencies. Brent crude oil prices also fell 2.20 per cent to USD 73.30 per barrel in futures trading.
Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors, said the rupee weakened because of unexpected US tariffs on Indian goods. He expects it to trade between 85.50 and 86.00, with exporters likely to sell when it nears the higher level.
Also Read: First Trade: Sensex slumps over 800 pts, Nifty at 23,150; pharma gauge climbs 3%
Stock market summary
Indian stock markets reacted negatively to the US tariffs, opening lower on April 3, 2025. The Sensex plunged 805 points to 75,811.86, while the Nifty50 dropped 182.05 points (0.78%) to 23,150.3.
Midcap stocks performed worse than small-cap stocks, reflecting a broader market decline. Foreign investors also pulled out Rs 1,538.88 crore from Indian equities on Wednesday, according to exchange data.
(With inputs from PTI)
