The rupee appreciated by 34 paise to 84.96 against the U.S. dollar in early trade on April 4, 2025, amid a broad-based weakening of the greenback following President Donald Trump’s new tariffs. The fall in crude oil prices and concerns over inflation and recession in the U.S. also supported emerging market currencies.

Forex traders attributed the rupee’s rise to weaker dollar sentiment and lower global oil prices. The rupee opened at 85.07 before gaining to 84.96, compared to Thursday’s close of 85.30. The dollar index fell 0.42% to 101.64, while Brent crude dropped 0.84% to $69.55 per barrel.

Amit Pabari, MD of CR Forex Advisors, said Trump’s reciprocal tariffs may harm U.S. consumers and slow growth. He noted India remains less affected, with an effective tariff rate of 27%, enhancing its export competitiveness compared to nations like China and Vietnam.

Meanwhile, Indian markets fell, with the Sensex dropping 594.05 points and FIIs selling equities worth ₹2,806 crore.