Indian rupee experienced a marginal decline, closing 2 paise lower at 85.52 against the US dollar on April 2, 2025. This marked the first trading session of the new fiscal year 2025-26. The currency’s movement was influenced by a combination of domestic and global factors, including trade tariff uncertainties, rising crude oil prices, and foreign fund outflows.
At the interbank foreign exchange market, the rupee opened at 85.65 and fluctuated within a narrow range, touching an intra-day high of 85.50 and a low of 85.73 before settling at 85.52. Forex traders noted that while positive domestic equity markets provided some support, concerns over trade tariffs and the surge in crude oil prices exerted downward pressure on the rupee.
One of the key factors impacting the rupee was the uncertainty surrounding former U.S. President Donald Trump’s proposed reciprocal tariffs. Trump had criticized high tariffs imposed by India and other countries on American goods and announced plans to introduce reciprocal tariffs, which he referred to as “Liberation Day” for the U.S. This announcement created apprehension in global markets, affecting investor sentiment and contributing to the rupee’s subdued performance.
Additionally, rising crude oil prices added to the pressure on the rupee. Brent crude, the global oil benchmark, was trading at $74.40 per barrel, reflecting a 0.12% decline in futures trade. Higher crude oil prices typically lead to increased import bills for India, which is a major oil importer, thereby impacting the rupee’s value.
Despite these challenges, the rupee’s decline was cushioned by a weak tone in the U.S. dollar and positive domestic equity markets. The 30-share BSE Sensex rose by 592.93 points (0.78%) to close at 76,617.44, while the Nifty advanced by 166.65 points (0.72%) to settle at 23,332.35. These gains in the equity markets provided some support to the rupee.
Rupee Ends 2 Paise Lower at 85.52 Against Dollar Amid Trade Tariff Uncertainty
