The Indian rupee strengthened by 40 paise to trade at 87.25 against the US dollar in early Friday trading, supported by easing crude oil prices and likely intervention by the Reserve Bank of India (RBI).
Forex traders noted that the recent announcement of a 25% tariff by the US on Indian exports has sparked risk-off sentiment in the market, raising concerns over potential further depreciation of the rupee.
Investor focus remains on US President Donald Trump’s move to implement new—and largely increased—tariffs on key trading partners, effective August 1, which is adding to global market uncertainty.