Rupee declines 7 paise to 85.45 against U.S. dollar in early trade

The rupee depreciated 7 paise to 85.45 against the U.S. dollar in early trade on Thursday (May 29, 2025).
| Photo Credit: Reuters

The rupee depreciated 7 paise to 85.45 against the U.S. dollar in early trade on Thursday (May 29, 2025) as the American currency strengthened after the U.S. federal court blocked President Donald Trump’s sweeping reciprocal tariff order, fuelling hope of ending global trade uncertainties.

The local unit was weighed down by higher crude oil prices overseas and disappointing domestic data on industrial output for April. However, inflow of foreign funds and buying trend in domestic equities capped the rupee’s fall, forex traders said.

At the interbank foreign exchange, the domestic unit opened at 85.56 and gained some ground to trade at 85.45 against the greenback in initial deals, 7 paise lower from its previous close.

The local unit ended Wednesday’s session 2 paise higher at 85.38 against the dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading higher by 0.40% at 100.18.

Brent crude, the global oil benchmark, climbed 1.11% to $65.62 per barrel in futures trade.

In the domestic equity market, the 30-share BSE Sensex rose by 350.27 points, or 0.43%, to 81,662.59, while the Nifty went up 94.05 points, or 0.38%, to 24,846.50.

Foreign institutional investors (FIIs) purchased equities worth ₹4,662.92 crore on a net basis on Wednesday, according to exchange data.

On the domestic macroeconomic front, India’s industrial production growth slowed to 2.7% in April 2025 due to poor performance of manufacturing, mining and power sectors, according to official data released on Wednesday.