Dollar Surge & Rupee Slump: Impact of Trump's Softened Stance

The Indian rupee depreciated by 15 paise against the US dollar after President Donald Trump softened his stance on key economic issues. His backing of FED Chair Jerome Powell and potential tariff reductions on China bolstered the USD, impacting global markets and driving up the dollar index.

The rupee fell by 15 paise to 85.34 against the US dollar in early Wednesday trading, influenced by a recovery of the American currency. This follows President Donald Trump's softened positions on the Federal Reserve and trade relations with China.

Forex traders noted a market shift after Trump eased tensions, retracting threats to dismiss FED Chair Jerome Powell and opening the door to potential tariff reductions. This adjustment has strengthened the dollar, reflected in a rise in the dollar index to 99.28 and gains in US stock indices by over 2.5%.

The domestic currency opened at 85.24 and dropped to 85.34 against the dollar. Concurrently, Brent crude prices climbed by 0.83% to USD 68 per barrel, as markets react to Trump's updated economic posture.

(With inputs from agencies.)