Rupee Bounces Back Amid Economic Turmoil

The rupee, recovering from its all-time low, closed at 87.65 against the US dollar due to lower crude prices and possible RBI interventions. Amid concerns over new US tariffs on Indian imports, Forex traders forecast continued rupee pressure unless significant policy reversals occur.

The Indian rupee made a modest recovery on Thursday, closing at 87.65 against the US dollar after plunging to its lowest point the previous day. This rebound came amidst falling crude prices and suspected interventions by the Reserve Bank of India (RBI).

The volatility was triggered by US President Donald Trump's imposition of 25 per cent tariffs on Indian exports, escalating fears of further rupee depreciation. Forex experts highlight that without clarity on the tariff situation, the rupee's pressure may persist.

The RBI's strategy possibly included intervening around 87.75/USD to manage fluctuations. Additionally, their regular VRRR auctions continue to stabilize short-term interest rates. Talks on a bilateral trade agreement are ongoing between India and the US as trade tensions loom.

(With inputs from agencies.)