Rupee opens 20 paise down at 85.85 as dollar index rises

Indian Rupee

The rupee opened 20 paise down on July 11 after the dollar index surged over US President Donald Trump's tariff uncertainties.

The currency opened at 85.84 against the US dollar after closing the previous day at 85.64.

The dollar index, which measures the American currency against a basket of six other currencies, rose to 97.867. It had ended the previous session at 97.65, as Trump’s tariff letters continued to flow.

Trump announced a 35 percent tariff on Canadian imports as part of what he said was a response to "Canada's retaliation" and ongoing trade barriers.

“Instead of working with the United States, Canada retaliated with its own tariffs. Starting August 1, 2025, we will charge Canada a Tariff of 35% on Canadian products sent into the United States, separate from all Sectoral Tariffs,” Trump wrote in the letter posted on his Truth Social platform.

Trump said any Canadian response would be met with additional tariffs. "If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by, will be added onto the 35 percent that we charge," he wrote.

Throughout the week, Trump has rolled out a series of letters and statements on tariffs, creating uncertainties for investors.

"US President Trump has revealed tariff rates for 22 nations, so far. The bullish tone in dollar index (DXY) continues amid trade tensions. For USD/INR, 85.55 acts as a support and 86.10 as resistance," said Kunal Sodhani, Head of Treasury at Shinhan Bank.

(with inputs from agencies)