Dollar vs. Rupee: The dollar index and crude oil have declined drastically after the tariff was imposed by US President Donald Trump. Which has directly benefited the Indian rupee. Today, the rupee improved 40 paise to 85 against the dollar. With this, the Indian rupee has reached a three -month high against the dollar today.
In the foreign currency exchange market today, the rupee arrived at 84.99 after opening at 85.04 against the dollar. Which indicates a improvement of 40 paise as compared to the level of 85.44 of the previous season. Since December 2024, the rupee is trading around 85 against the dollar.
Dollar declines due to fear of recession
Trump’s mutual tariff has deepened the clouds of the global recession. Due to which the dollar index has reached its lowest level 101.73 since September 2024. After an increase of 2.39 percent in March, it has declined by 2.16 percent in the last five days. The dollar index recently reached a high level of 110.18. Since Trump’s tariff announcement, the dollar has been falling continuously for the last 15 days. Due to which it has now fallen by 6.16 percent on an annual basis and 6.57 percent on quarterly basis.
Crude oil price fall
Crude oil prices have also fallen. Crude oil prices have declined by six percent due to the tariff imposed by Trump amid the decision to increase the production of OPEC+. Yesterday Brent crude futures fell 6.42 percent to $ 70.14 per barrel. Today it is trading at $ 69.15 with a decline of 1.54 percent. India imports more than 80 percent of its crude oil requirement. India’s foreign exchange savings are likely to increase due to a fall in crude oil prices and dollar weakness.
Jatin Trivedi, a research analyst (commodity and currency) of LKP Securities, said that the rupee has seen a rapid recovery against the dollar. The rupee will be within 85-85.90 against the dollar due to global signals and FII flow.
Benefits India
As the rupee will strengthen against the dollar, imports will become cheaper. However, 26 percent of mutual tariffs imposed on imports from the US will cost Indian importers. The import of automobile, electronics, agriculture, crude oil and metals will be cheaper. It is worth noting that the dollar serves as the main currency for global trade.
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