The Indian rupee rose against the US dollar today due to a sharp fall in crude oil prices and a weaker greenback due to US President Donald Trump’s tariff tantrum.
At the interbank foreign exchange, the rupee opened at 90.76 against the US dollar and then strengthened to 90.73, up 21 paise from its previous close of 90.94 on Friday. According to forex traders, the currency is being supported by a positive opening of India’s stock market and increase in foreign exchange reserves.
“The rupee opened stronger following a fall in the dollar index due to the US Supreme Court decision on tariffs,” Anil Kumar Bhansali, head of treasury and executive director, Finrex Treasury Advisors LLP, told Press Trust of India. “Most Asian currencies rose from their Friday closing levels.”
However, he said that dollar buying sentiment continues in the market and this may impact the rupee. He said, “As the day passes, there may be selling in the rupee and buying of dollars will continue in the market.”
The dollar index was trading 0.33% lower at $97.47, as Brent crude was down 1.09% at $70.98 a barrel. India’s foreign exchange reserves rose by $8.663 billion to a new all-time high of $725.727 billion in the week ended Feb 13, according to the Reserve Bank of India.
