Rupee falls 15 paise to 85.34 against U.S. dollar in early trade

Rupee weakens against dollar as Trump softens stance, boosting U.S. indices and dollar index, while oil prices rise.

Rupee depreciated 15 paise to 85.34 against the U.S. dollar in early trade on Wednesday (April 23, 2025), after the American currency recovered supported by U.S. President Donald Trump’s softened stance – particularly towards the Federal Reserve and against China.

Forex traders said the market found support after Mr. Trump on Tuesday (April 22, 2025) backed off from threats to fire FED Chair Jerome Powell after days of intensifying criticism against him for not cutting rates. Mr. Trump also signalled the possibility of lower tariffs against China.

The dollar index rose to 99.28, while the U.S. 10-year bond yield was slightly lower at 4.34%. All three U.S. indices gained by more than 2.5% in consequence of Mr. Trump’s softened stance.

At the interbank foreign exchange, the domestic unit opened at 85.24 then fell to 85.34 against the greenback in early deals, registering a loss of 15 paise over its previous closing level.

On Tuesday (April 22, 2025), the rupee settled lower by 4 paise at 85.19 against the U.S. dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading higher by 0.37% at 99.28.

The dollar index rose after Mr. Trump said that he had no intention of firing Powell but would like to see him more active in terms of his ideas to lower interests,” Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.