Rupee open 45 paise up on Trump tariff pause, sliding dollar

Rupee

The rupee opened 45 paise up on April 11 against the US dollar following a selloff in the American market over the worsening tariff war with China amid a 90-day pause on reciprocal tariffs with other countries.

The rupee opened at 86.25 against the US dollar after closing the previous session at 86.70.

The dollar index, which measures American currency's value against six major global peers, fell to 100.03 in the early trade, as against 100.867 levels in the previous trading sessions.

The decline followed a selloff in the US stocks and bonds, which expert say is foreign investors’ response to what they see as Trump protectionist policy.

"With the rupee now firming and sentiment improving, a sustained breach below 86 can open the door for further gains toward the 85.50–85.60 levels," Amit Pabari, managing director at CR Forex Advisers said.

On April 10, US President Donald Trump announced a 90-day “pause” on his reciprocal tariffs for all the countries but China. The baseline tariff for 10 percent, however, remains in place.

Hitting back at China for raising duties on American goods, Trump went for another round of hike, effectively taking tariffs on Chinese imports to 145 percent.

Trump ascribed his “pause” to “more than 75 countries asking for negotiations over the tariffs". He authorised a 90-day pause, and a substantially lowered “Reciprocal Tariff during this period, of 10%, also effective immediately", the American President posted on his Truth Social platform.