Rupee opens 21 paise down against dollar at 86.01 as dollar rises

Indian rupee

The rupee opened 21 paise down on July 14 on rising dollar amid renewed tariff threats from US President Donald Trump, intensifying trade concerns.

The currency opened at 86.01 against the US dollar after ending the previous session at 85.80.

The dollar index, which measures the American currency against a basket of six other currencies, rose to 97.95 in the early trade. It had closed at 97.85 in the previous session.

On July 12, Trump in separate letters to European Commission President Ursula von der Leyen and Mexican President Claudia Sheinbaum threatened 30 percent tariff from August 1.

Both the European Union and Mexico described the tariffs unfair and disruptive, while the EU said it would extend its suspension of countermeasures to US tariffs until early August and continue to press for a negotiated settlement.

Kunal Sodhani, Head of Treasury at Shinhan Bank, said Trump was slapping blanket tariffs, including on EU and copper exports.

US Jobless Claims drop unexpectedly, dampening hopes of Fed interest-rate cuts in the coming months. Fed’s Austan Goolsbee said the latest tariff threats could delay rate cuts.

"For USD/INR, 85.60 acts as a base, while 86.10 a resistance," Sodhani added.