Indian rupee opens higher after Donald Trump pauses tariffs on Canada, Mexico

The rupee slipped past 87 for the first time on February 3 after Trump imposed a 25 percent tariff on goods from Canada and Mexico and 10 percent on Chinese products.

The rupee, which sank to an all-time low the previous day, opened higher on February 4, as the dollar index eased after US President Donald Trump suspended his decision to slap tariffs on Canada and Mexico and opened doors to initiate talks with China.

The rupee opened at 87.0300 against the dollar after closing at 87.1950 the previous day.

The rupee slipped past 87 for the first time on February 3 after Trump imposed a 25 percent tariff on goods from Canada and Mexico and 10 percent on Chinese products.

"Indian rupee, which fell to its lowest yesterday, is opening up this morning after relief from Trump's Tariffs overnight on reaching an agreement with Canada and Mexico," said Anil Kumar Bhansali, head of treasury and executive director, Finrex Treasury Advisors LLP.

The dollar index, which measures the American currency against six major global peers, rose to 108.750 in the early trade after ending the previous session at 108.990.

Late on February 3, Trump announced a 30-day pause on proposed tariffs on Canadian and Mexican imports after talking to the leaders of the two countries.

The move followed commitments from Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum to strengthen border security with the US.

Over the weekend, the Trump administration announced a 25 percent import tariff on all Mexican imports and most Canadian goods, with a 10 percent exemption for energy products.