The rupee strengthened 42 paise to 85.34 per dollar in early trade on Tuesday, after the American currency sank to a multi-month low and a steady rise in domestic equities improved mood. The US dollar index fell in the offshore market as the increasing clout of President Donald Trump on Federal Reserve policy rekindled concerns regarding the independence of the central bank.
Moreover, Brent crude prices remained tame, providing a cushion to India's import bill and inflationary trends. At the interbank foreign exchange, the home currency opened at 85.66 against the US currency. In initial trade, it rose up to 85.34, gaining 42 paise over its previous close.
On Wednesday, the rupee closed 26 paise lower at 85.76 against the dollar on Monday. In contrast, the dollar index tracking the greenback's strength against a basket of six currencies fell 0.17 per cent to 96.71.
Also read: Sensex, Nifty fall after 4 days mid small caps shine
The US Dollar Index fell to a multi-month low of 96.614, jolted by fresh political noise. President Donald Trump's increasing influence over Federal Reserve policy, including plans to replace Fed Chair Powell, has unnerved investors and rekindled fears over the independence of the central bank, according to Amit Pabari, MD of CR Forex Advisors.
Brent crude, the global oil benchmark, dropped 0.24 per cent to USD 67.61 per barrel in futures trade.
The USDINR pair will find strong support near 85.20–85.40, Pabari said, with a rebound toward 86–86.50 likely in coming days amid weak domestic data, equity outflows, and global uncertainty.
While in the domestic equity market, Sensex gained 200.92 points or 0.24 per cent to 83,807.38 and Nifty climbed 57.85 points or 0.23 per cent to 25,574.90. On the other hand, FIIs sold equities amounting to ₹831.50 crore on a net basis on Monday, based on the exchange data.
India's industrial production growth slowed to a nine-month low at 1.2 per cent in May 2025 on account of poor performance in the manufacturing, mining, and power sectors due to early onset Monsoon, official data released on Monday said.
The fiscal deficit of the central government dropped to 0.8 per cent of the full-year target by the end of May, led principally by a massive ₹2.69 lakh crore dividend the RBI paid.
Follow us
