On Tuesday, the Indian rupee opened at 84.65 per dollar, gaining 75 paise over the previous close of 85.38. This surge follows a temporary trade truce between the US and China involving tariff reductions. The rupee’s movement also reflects global currency trends, foreign investor activity, and macroeconomic conditions.

BulletsIn

• Rupee opened at 84.65/USD, up 75 paise from 85.38

• Boost came after US-China 90-day tariff reduction pact

• US slashed tariffs on Chinese goods from 145% to 30%

• China cut tariffs on US goods from 125% to 10%

• FY25 rupee range: 83.10 to 87.60 against the dollar

• Declined post-US election, fell 2.4% over the fiscal

• March 2025: Rupee rebounded with 2.4% gain

• Helped by renewed FPI inflows, weaker dollar

• Average FY25 volatility: 2.7% — among lowest in EMs

• REER still high at 105.3, but overvaluation easing