Rupee Falls 8ps To 85.77/$

Mumbai: The rupee weakened by 8paise to close at 85.77 against the US dollar on Thursday, as month-end dollar demand from importers, coupled with the greenback’s recovery against major currencies, weighed on the rupee. The US dollar strengthened after US president Donald Trump late on Wednesday announced long-promised 25 per cent tariffs on automotive imports, set to take effect on April 2. Forex dealers said the rupee is also facing renewed pressure on liquidity constraints, concerns over reciprocal tariff implementations and month-end demand for the US currency from importers. However, positive domestic markets and foreign fund inflows cushioned the downside. At the interbank foreign exchange, the rupee opened at 85.90 and touched the high of 85.73 against the greenback during the day. The unit later turned volatile and hit the day’s low of 85.93 before ending the session at 85.77 against the dollar, 8paise lower from its previous closing level. On Wednesday, the rupee settled higher by 3paise at 85.69 against the US dollar. Anuj Choudhary – Research Analyst at Mirae Asset Sharekhan said, rupee is expected to trade with a slight negative bias on month-end dollar demand from importers and Oil Marketing Companies (OMCs). “Elevated crude oil prices and a bounceback in the US dollar may also pressurise the rupee. However, strong domestic markets and FII inflows may support the rupee at lower levels. Traders may take cues from final GDP data from the US. USD-INR spot price is expected to trade in a range of 85.60 to 86.10,” Choudhary added.