The Indian rupee opened 5 paise higher on Tuesday at 88.1525 against the US dollar, compared with the previous close of 88.2012, even as uncertainty over US tariffs weighed on sentiment, currency experts said.
The dollar index, which tracks the greenback against a basket of six major currencies, edged up to 97.818 in early trade from 97.771 at the previous close.
"With U.S. tariff issues unresolved, risks remain skewed to the downside. Persistent foreign outflows or dollar strength could drive further weakness, while any recovery is likely to stay limited without clear trade relief," said Amit Pabari, Managing Director at CR Forex Advisors.
Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, added that the Reserve Bank of India is currently the only major supplier in the market, while participants await IPOs and other large inflows to support the rupee and cap further depreciation.
The currency market also tracked geopolitical developments.
Just hours after the Shanghai Cooperation Organisation (SCO) Summit, where Prime Minister Narendra Modi met Chinese President Xi Jinping and Russian President Vladimir Putin, US President Donald Trump criticised India over trade, calling the relationship “a totally one-sided disaster.”
In a Truth Social post, Trump claimed India sells “massive amounts of goods” to the US while buying little in return, accusing New Delhi of imposing “the highest tariffs of any country.” He noted India’s reliance on Russia for oil and defence equipment and dismissed its recent offer to cut tariffs to zero as “too late.”
“They have now offered to cut their tariffs to nothing, but it’s getting late. They should have done so years ago. Just some simple facts for people to ponder!!!” Trump wrote.
On the technical front, Kunal Sodhani, Head of Treasury at Shinhan Bank, said USD/INR faces support at 87.80 and resistance at 88.35–88.40.
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