Rupee closes stronger amid tariff uncertainty; ends higher at 85.70/$

Indian Rupee today: The domestic currency closed 16 paise higher at 85.70 against the dollar on Tuesday

The Indian Rupee advanced alongside its Asian peers as US President Donald Trump kept the door open for trade negotiations despite imposing tariffs on several countries. 

 

The domestic currency closed 16 paise higher at 85.70 against the dollar on Tuesday, a day after seeing the worst fall since June 13, according to Bloomberg. In the previous session, the currency fell past the 86 mark during the intraday trades. 

 

The Rupee traded stronger, supported by a recovery in Asian currencies, analysts said. Rupee traded strongly as softer crude prices and easing FII selling pressure supported the currency, according to Jateen Trivedi, VP research analyst - commodity and currency at LKP Securities. 

 

   

"Market optimism around potential trade agreements with the US also buoyed sentiment. The rupee is expected to remain firm within a range of 85.25 to 86.00 in the near term," Trivedi said. 

 

Japan, South Korea, Malaysia and Kazakhstan would pay a 25 per cent levy on their exports to the US. Indonesia will face 32 per cent tariffs, Bangladesh 35 per cent, and Cambodia and Thailand 36 per cent tariffs each. 

 

There is no word yet on India, but Trump said that the US is close to making a deal. However, on Monday, Trump threatened to slap additional levies on countries aligned with the Brics group, of which India is a member. 

 

The dollar index traded firm after Trump's fresh tariff threats. The dollar index, the measure of the greenback against a basket of six major currencies, was down 0.13 per cent at 97.35. The index has fallen 10.32 per cent so far this year. All eyes are now on the upcoming Fed meeting minutes, which could guide the dollar direction further. 

 

In commodities, crude oil prices traded slightly lower after Opec+ decided on a bigger-than-expected production increase. Brent crude price was down 0.59 per cent at $69.17 per barrel, while WTI crude prices were lower by 0.79 per cent at 67.39, as of 3:30 PM IST.