Rupee Rises for Second Day to 87.82 Against Dollar Amid Trump’s Russian Oil Claim

The Indian rupee continued its upward trend for the second consecutive day, opening 25 paise higher at 87.82 against the U.S. dollar on October 16. The gains came after former U.S. President Donald Trump claimed that India had committed to halting imports of Russian oil, easing trade tensions and supporting the rupee. Analysts also attributed the rise to a softer dollar index and robust performance of major Asian currencies.

The previous session saw the rupee close at 88.07, marking a 0.36% appreciation in two days. Currency experts highlighted that the easing of the dollar and stronger Asian currencies, including the Thai baht and South Korean won, have contributed to the rupee’s recovery.

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Trump’s remarks have drawn attention due to the ongoing trade friction between Washington and New Delhi. In August, the U.S. imposed an additional 25% tariff on Indian goods for continuing to purchase Russian oil, bringing the cumulative levy to 50%—one of the highest globally. Trump stated that during an October 15 conversation, Prime Minister Narendra Modi assured him that India would cease purchases of Russian oil, signalling a potential easing of this trade dispute.

He promised me today that India will no longer purchase oil from Russia, which made me unhappy. That is a significant step. Trump told reporters at the White House, "Now I have to get China to do the same thing." He did concede that India could not instantly stop imports, stating that it would take "a little bit of a process," but he anticipated that the changeover would be finished quickly. Requests for comment on the issue were not immediately answered by the Indian embassy in Washington.

Data from Bloomberg showed the rupee’s recent strength relative to other regional currencies. On October 16, the Thai baht rose 0.26%, the South Korean won 0.19%, the Singapore dollar 0.15%, the Japanese yen 0.12%, the Malaysian ringgit 0.10%, the Hong Kong dollar 0.03%, and the Chinese renminbi 0.02%.

Market analysts noted that while Trump’s claims have temporarily boosted investor sentiment, the rupee’s performance will continue to depend on official Indian policy responses, global currency movements, and developments in international trade relations. With heightened geopolitical scrutiny and fluctuating oil markets, traders remain cautious in the near term.

Conclusion

In summary, the Indian rupee rose for the second consecutive day, opening at 87.82 against the U.S. dollar, following Trump’s claim regarding India’s commitment to stop buying Russian oil. Coupled with a weaker dollar and strong regional currencies, the rupee displayed resilience, although its future movement will hinge on official clarifications and broader market conditions.