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Rupee depreciated by 7 paise to 85.45 against the US dollar in early trade on Thursday, tracking a stronger American currency after a US federal court blocked President Donald Trump’s sweeping reciprocal tariff order. The court’s decision raised hopes of reducing global trade uncertainty, supporting dollar strength globally.
At the interbank foreign exchange, the domestic unit opened at 85.56 and later trimmed losses to trade at 85.45 in early deals, down 7 paise from its previous close of 85.38.
Also Read:Currency Market News: Rupee pares losses, settles flat at 85.40 against dollar
Crude climbs, weak industrial output drags rupee
Higher global crude oil prices and disappointing domestic industrial output data for April exerted pressure on the local currency, forex traders said. Brent crude, the international benchmark, rose 1.11 per cent to $65.62 per barrel in futures trade.
India’s industrial production growth slowed to 2.7 per cent in April 2025, weighed down by poor performance in manufacturing, mining, and power sectors, according to official data released on Wednesday.
Meanwhile, the dollar index, which measures the greenback's performance against a basket of six major currencies, rose 0.40 per cent to 100.18, further weighing on the rupee.
Also Read:First Trade: Indices open higher tracking positive global cues, Nifty above 24,850
Equity inflows, strong opening limit rupee’s decline
Despite external pressures, continued foreign fund inflows and a positive trend in domestic equities helped limit the rupee’s fall. Foreign institutional investors (FIIs) bought equities worth Rs 4,662.92 crore on a net basis on Wednesday, according to stock exchange data.
On the weekly expiry day, domestic equities opened on a strong note following positive global cues. The Nifty50 rose 0.4 per cent or 100 points to 24,852.55, while the Sensex gained 329.85 points or 0.41 per cent to 81,642.17 in early trade.
Broader markets also witnessed gains, with the smallcap index outperforming the midcaps. Bank Nifty remained resilient, driven by key counters including HDFC Bank, ICICI Bank, Federal Bank, Kotak Mahindra Bank, and Axis Bank.
(With PTI inputs)
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