Finance
The Indian rupee closed lower for the fourth day in a row on Friday, reversing early gains, even as the dollar fell after US President Donald Trump’s tariffs were reintroduced.
The native currency closed 6 paise down at 85.36 against the US dollar, down from 85.52 on Thursday, according to Bloomberg. The currency also reversed two months of advances, falling by more than 1% in May.
The euro closes higher ahead of the critical GDP figures set to be revealed later today. According to Amit Pabari, managing director at CR Forex Advisors, a higher-than-expected GDP result might cause the rupee to rise sharply, especially with crude oil prices falling and the dollar strengthening.
On Thursday, the US Court of Appeals granted the Trump administration’s plea to temporarily suspend the trade court’s decision to prohibit ‘liberation day’ duties. The US GDP dropped in the March quarter, marking the first decline in three years. The dollar index, which measures the greenback against a basket of six major currencies, rose 0.31 percent to 99.58.
With seesaw trade plans keeping investors on edge, the dollar index has lost 8% this year. The dollar is set to fall for the sixth consecutive month as markets braced for more bouts of uncertainty over trade and fiscal health, according to experts.
