Market News
Rupee seen dipping at open on Trump's tariff turbulence - REUTERS
By Nimesh Vora
MUMBAI, Feb 11 (Reuters) - The Indian rupee is poised to open slightly weaker on Tuesday after U.S. President Donald Trump made good on his threat of imposing tariffs on steel and aluminium imports, fuelling fears of a wider trade war.
The 1-month non-deliverable forward indicated that the rupee will open at 87.52-87.54 to the U.S. dollar down from 87.4750 on Monday. The Indian currency had dropped to near 88 on Monday, before aggressive intervention by the central bank helped it recover.
The 88 level "probably marks the near-term top for now" for the dollar/rupee pair considering the way the Reserve Bank of India intervened on Monday, a currency trader at a bank said.
A "bigger" dip on dollar/rupee from here is unlikely taking into account how Trump is "juicing up" on the tariffs, he said.
Trump, following through on his comments, raised tariffs on steel and aluminium imports on Monday, spurring worries of a multi-front trade war. He reiterated that he would follow this up with reciprocal tariffs on all countries over the next two days.
