<p>Mumbai: The rupee depreciated 24 paise to 85.93 against the US dollar in early trade on Thursday, as US President Donald Trump's tariff policies reignited fears of a global trade war, fuelling inflation concerns and causing ripple effects across currency markets.</p><p>The US dollar strengthened after Trump late on Wednesday announced long-promised 25 per cent tariffs on automotive imports, set to take effect on April 2.</p><p>Forex dealers said the rupee is also facing renewed pressure on liquidity constraints, concerns over reciprocal tariff implementations and month-end demand for the US currency from importers.</p><p>However, foreign fund inflows supported the rupee at lower levels.</p><p>At the interbank foreign exchange, the rupee opened at 85.90 against the greenback, then lost ground and touched 85.93, down 24 paise from its previous close.</p>.Markets rebound in early trade amid foreign fund inflows.<p>On Wednesday, the rupee settled higher by 3 paise at 85.69 against the US dollar.</p><p>Given the current global and domestic market dynamics, the USD/INR pair is expected to find strong support around 85.40-85.50, with the potential for a rebound towards 86.50 in the short term, CR Forex Advisors MD - Amit Pabari said.</p><p>Meanwhile, the US dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.22 per cent lower at 104.32.</p><p>Brent crude, the global oil benchmark, was trading 0.12 per cent higher at $73.88 per barrel in futures trade.</p><p>In the domestic equity market, the 30-share BSE Sensex was trading 284.21 points, or 0.37 per cent, higher at 77,572.71, while the Nifty was up 73.50 points, or 0.31 per cent, at 23,560.35.</p><p>Foreign institutional investors (FIIs) purchased equities worth Rs 2,240.55 crore on a net basis on Wednesday, according to exchange data.</p>
<p>Mumbai: The rupee depreciated 24 paise to 85.93 against the US dollar in early trade on Thursday, as US President Donald Trump's tariff policies reignited fears of a global trade war, fuelling inflation concerns and causing ripple effects across currency markets.</p><p>The US dollar strengthened after Trump late on Wednesday announced long-promised 25 per cent tariffs on automotive imports, set to take effect on April 2.</p><p>Forex dealers said the rupee is also facing renewed pressure on liquidity constraints, concerns over reciprocal tariff implementations and month-end demand for the US currency from importers.</p><p>However, foreign fund inflows supported the rupee at lower levels.</p><p>At the interbank foreign exchange, the rupee opened at 85.90 against the greenback, then lost ground and touched 85.93, down 24 paise from its previous close.</p>.Markets rebound in early trade amid foreign fund inflows.<p>On Wednesday, the rupee settled higher by 3 paise at 85.69 against the US dollar.</p><p>Given the current global and domestic market dynamics, the USD/INR pair is expected to find strong support around 85.40-85.50, with the potential for a rebound towards 86.50 in the short term, CR Forex Advisors MD - Amit Pabari said.</p><p>Meanwhile, the US dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.22 per cent lower at 104.32.</p><p>Brent crude, the global oil benchmark, was trading 0.12 per cent higher at $73.88 per barrel in futures trade.</p><p>In the domestic equity market, the 30-share BSE Sensex was trading 284.21 points, or 0.37 per cent, higher at 77,572.71, while the Nifty was up 73.50 points, or 0.31 per cent, at 23,560.35.</p><p>Foreign institutional investors (FIIs) purchased equities worth Rs 2,240.55 crore on a net basis on Wednesday, according to exchange data.</p>