Rupee opens 28 paise up as dollar index falls

Rupee

The Indian rupee opened 28 paise up against the dollar at 86.3875 on January 21, hours after Donald Trump was sworn in as the US president and laid out broad contours of his tariff plan which will likely take some time to shape

After opening higher, the rupee fell to 86.3813 against the previous day’s close of 86.5687.

The dollar index, which tracks the American currency’s value against six major currencies, fell to 108.244. It ended the previous session at 109.347.

Amit Pabari, MD at CR Forex Advisors, said the markets had braced for the shockwave of Trump’s fiery campaign promises, specifically, the immediate imposition of steep tariffs: 25 percent on imports from Canada and Mexico, and a staggering 60 percent on China. A sense of relief rippled through traders after the 47th American president’s first day in office passed without such measures.

Hours after his inauguration, Trump said that he could impose a 25 percent tariff on Canada and Mexico from February 1, which can intensify trade tensions with neighbouring nations.

"We're thinking of tariffs of 25 percent on Mexico and Canada because they're allowing vast numbers of people to come in, and fentanyl to come in," said Trump. Canada is a “very bad abuser”, as he voiced concerns over the illegal entry of fentanyl and migrants from the northern border of America.

The comments were made during a press briefing where the newly inaugurated president issued a series of executive orders addressing topics such as regulations, free speech, and immigration.