Indian Rupee slips below 85/$; Gains 38 paise at open as dollar, oil slides

The Indian Rupee opened stronger on Friday and fell below the 85 mark against the dollar, as the dollar index and oil prices dropped sharply amid concerns over the impact of US tariffs on the economy.

 

The domestic currency strengthened 38 paise to open at 85.06 against the greenback after closing at 85.44 on Thursday, according to Bloomberg data. In the initial trade, the Rupee fell past the 85 mark to trade at 84.99 against the dollar, the highest since December 2024. 

 

As the risk of recession increased, the dollar index — a measure of the value of the US dollar relative to a basket of foreign currencies — was down 0.33 per cent to 101.73, the lowest since September 2024. After appreciating by 2.39 per cent in March, the Rupee rose by 0.5 per cent in April so far. 

 

 

This comes a day after US President Donald Trump unleashed a barrage of tariffs even as analysts from JPMorgan to Bernstein expect the risk of recession and inflation to rise in the US. He announced tariffs of at least 10 per cent on practically all imports, with higher rates on countries that have the highest trade deficits with the US. 

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After Trump unleashed his 'discounted' tariffs, US international setback poured in with Canada announcing 25 per cent retaliatory tariffs on some US-made vehicles while France’s Emmanuel Macron urged companies to pause US investments. The retaliatory tariffs from trading partners could trigger a global trade slowdown, adding to recessionary fears, according to Amit Padari, managing director of CR Forex Advisors. 

 

The dollar’s broad-based weakness offered relief to emerging market currencies, including the Rupee, Pabari said. "The dollar-rupee pair is expected to move downwards with 84.90-85.00 acting as a strong support, while 85.60 will act as a strong resistance."

 

Crude oil prices saw the worst fall since 2022 on OPEC+ 's decision to increase output faster than previously announced, combined with a tariff announcement that dented the outlook. Brent crude oil was down 0.86 per cent to $69.54 per barrel as of 9:15 AM IST. 

 

Indian rupee could even breach 85.00 levels if flows continue and the Reserve Bank of India does not step in to buy dollars and keep the rupee away from further appreciation, according to Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP. " A range of 85.10 to 85.60 is the best course for the rupee today with risks to the upside."