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Foreign exchange (Forex) traders said concerns persisted over economic headwinds from tariffs and U.S. monetary policy that could dampen demand.
| Photo Credit: Reuters
Rupee traded in a narrow range and depreciated 4 paise to 85.19 against the U.S. dollar in early trade on Tuesday (April 22, 2025), as the support from positive domestic equities was negated by dollar short-covering by investors.
Foreign exchange (Forex) traders said concerns persisted over economic headwinds from tariffs and U.S. monetary policy that could dampen demand.
At the interbank foreign exchange, the domestic unit opened at 85.11 then fell to₹85.19 against the greenback in early deals, registering a loss of 4 paise over its previous closing level. On Monday (April 21), the rupee appreciated 23 paise to settle at ₹85.15 against the US dollar.
“Concerns of a potential recession driven by the tariff war persist. The U.S. president again repeated his criticism of FED Chair Powell and said that the U.S. economy will slow unless interest rates are lowered immediately…. His comments fuelled worries about the FED’s independence in setting monetary policy and about the outlook for U.S. assets,” said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.
The rupee opened slightly weaker after touching a high of 85.03 on Monday (April 21) which was almost a month’s high with inflows pouring in debt as well as equity, Mr. Bhansali said.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading lower by 0.19% at 98.09.
Brent crude oil, the global oil benchmark, rose 0.53% to $66.61 per barrel in futures trade.
In the domestic equity market, the 30-share BSE Sensex rose by 155.28 points, or 0.20%, to 79,563.78, while the Nifty advanced 37.30 points, or 0.15%, to 24,162.85.
Foreign institutional investors (FIIs) bought equities worth ₹1,970.17 crore on a net basis on Monday (April 21), according to exchange data.
Published – April 22, 2025 11:18 am IST
