Rupee slips for third straight day on Trump tariff ruling; ends at 85.52/$

Indian Rupee today: The domestic currency closed 16 paise weaker at 85.52 against the US dollar, after ending at 85.36 on Wednesday

The Indian Rupee weakened on Thursday but remained range-bound near its opening losses, as the US dollar strengthened following a federal court's decision to block President Donald Trump's 'liberation day' tariffs.

 

The domestic currency closed 16 paise weaker at 85.52 against the US dollar, after ending at 85.36 on Wednesday, according to Bloomberg. The currency extended its fall to a third-straight day and is on course to end the month with a depreciation of 1.2 per cent. 

 

From a technical standpoint, the dollar-rupee pair remains in a consolidation zone with resistance near 85.70-85.90 levels and strong support of 84.90-85.10 levels, according to Amit Pabari, managing director at CR Forex Advisors. "A breach on either side could pave a sharp movement in that direction."

 

A panel of three judges at the US Court of International Trade in Manhattan issued an order, siding with the view that Trump had wrongfully invoked an emergency law. This led to a strengthening of the dollar index, helping it climb back to the 100 level alongside a rally in the Wall Street equity futures contracts. 

 

The dollar index, which measures the greenback against a basket of six major currencies, was up 0.13 per cent at 100.00. With See-saw tariff policies continuing to keep investors on edge, the dollar index has fallen 8 per cent this year. The Dollar also rose after the release of the latest FOMC minutes, which struck a notably cautious tone, according to Pabari. The dollar is expected to face resistance near the 101.50–102.00 zone, while immediate support lies around 99.50, he added. 

 

On the economic front, growth in India's industrial production fell to an eight-month low of 2.7 per cent in April from an upwardly revised figure of 3.94 per cent in March.

 

The market is currently consolidating within a range and is expected to remain so, supported by steady capital inflows into the country and consistent net equity purchases by foreign portfolio investors, according to Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP. 

 

Meanwhile, crude oil prices advanced after the federal court ruled against Trump's tariffs. Brent crude price was up 1.43 per cent to $65.83 per barrel, while WTI crude prices were 1.44 per cent higher at 62.73, as of 3:40 PM IST.