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Rupee depreciates on Wednesday amid Trump's reciprocal tariffs fears

02 Apr 2025 Evaluate

Indian rupee depreciated on Wednesday amid stronger American currency. Traders overlooked the report that India's manufacturing sector growth rose to an eight-month high in March, driven by quicker increases in factory orders and production amid buoyant demand conditions. The seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index (PMI) was at 58.1 in March, up from 56.3 in February, indicating a substantial improvement in the health of the sector that was above its long-run average. On the global front, antipodean currencies such as the Australia and the New Zealand dollars strengthened against their major counterparts in the Asian session on Wednesday, as traders await the introduction of reciprocal tariffs by U.S. President Donald Trump to be announced later in the day.

Finally, the rupee ended at 85.52 (Provisional), depreciated by 2 paise from its previous close of 85.50 on Friday. The currency touched a high and low of 85.73 and 85.50 respectively.

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