Indian rupee opens stronger against UAE dirham amid Trump tariffs

The Indian rupee opened stronger on Friday and fell below the 85 mark against the US dollar, as the dollar index and oil prices dropped sharply amid concerns over the impact of US tariffs on the economy.

The currency strengthened 38 paise to open at 85.06 (Dh23.1771) against the US dollars after closing at 85.44 (Dh23.2806) on Thursday, according to Bloomberg data. In the initial trade, the rupee fell past the 85 mark to trade at 84.99 (Dh23.1580) against the dollar, the highest since December 2024. 

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The dollar index plummeted nearly 2 per cent on Thursday, logging in its worst day in more than two years, amid worries that President Donald Trump's more severe-than-expected tariffs would lead to higher inflation and hurt growth.

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Trump said he would impose a 10 per cent baseline tariff on all US imports and higher duties on India and several other countries.

The blowback on the US economy "leaves the dollar naked" and investors fearing the impact on confidence and activity, ING Bank said in a note.

The concerns over US growth have prompted investors to lift their expectations to four rate cuts by the Federal Reserve this year, starting in June. The 2-year US yield is at its lowest in six months.

Asian currencies were up on the day, with the Korean won leading the way. Equities, meanwhile, added to Thursday's decline.