According to forex traders, weak crude oil prices and a decline in the dollar index supported the rupee. However, muted domestic markets and foreign fund outflows capped sharp gains
At the interbank foreign exchange, the domestic unit opened at Rs 87.69 and moved in a range of Rs 87.67-87.77 during the day before settling at Rs 87.69. Representational pic
The rupee consolidated in a narrow range and settled for the day higher by just 3 paise at 87.69 (provisional) against the US dollar on Thursday, after President Donald Trump slapped an additional 25 per cent duty – doubling it to 50 per cent – on Indian goods, denting market sentiments, reported PTI.
According to forex traders, weak crude oil prices and a decline in the dollar index supported the rupee. However, muted domestic markets and foreign fund outflows capped sharp gains.
Moreover, Trump's aggressive tariff move, which comes into effect in 21 days, threatens to raise total duties on select Indian exports to as high as 50 per cent – making them among the most heavily taxed US imports globally, further dented market sentiments.
At the interbank foreign exchange, the domestic unit opened at 87.69 and moved in a range of 87.67-87.77 during the day before settling at 87.69 (provisional), rising 3 paise from its previous close.
A day earlier, the rupee rebounded from a record low level and closed 16 paise higher at 87.72 against the US dollar.
The fresh slew of tariffs on Indian exports are likely to hit the textile, marine and leather exports sector hard. India has called the decision as "unfair, unjustified and unreasonable".
With this action singling out New Delhi for the Russian oil imports, India will attract the highest US tariff of 50 per cent along with Brazil.
The US has imposed the additional tariff or penalty for Russian imports only on India while other buyers such as China and Turkey have so far escaped such harsh measures. While China has been charged 30 per cent tariff, Turkey’s is 15 per cent.
Meanwhile, the Reserve Bank of India (RBI) on Wednesday decided to keep policy rate unchanged at 5.5 per cent and retained the neutral stance, amid concerns over tariff uncertainties.
Announcing the third bi-monthly monetary policy of the current fiscal, RBI Governor Sanjay Malhotra said the growth rate projection for Financial year (FY)26 has been retained at 6.5 per cent.
Meanwhile, Brent crude prices rose 0.52 per cent to USD 67.24 per barrel in futures trade.
The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.10 per cent to 98.08.
In the domestic equity market, the Sensex advanced 79.27 points to settle at 80,623.26, while Nifty was up 21.95 points to 24,596.15.
Foreign institutional investors (FIIs) offloaded equities worth Rs 4,999.10 crore on a net basis on Wednesday, according to exchange data.
(With PTI inputs)
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