The Indian rupee weakened by 15 paise to 85.34 against the US dollar in early trading on Wednesday, following a rebound in the American currency driven by a shift in Donald Trump’s tone on key economic issues.
According to forex traders, market sentiment steadied after Trump eased his previously harsh stance—particularly toward the Federal Reserve and China. On Tuesday, he backed away from his earlier threats to dismiss Fed Chair Jerome Powell, despite days of criticism over the Fed’s reluctance to cut interest rates. Trump also hinted at a possible reduction in tariffs on Chinese goods.
As a result, the dollar index climbed to 99.28, reflecting renewed strength in the greenback. Meanwhile, the yield on the US 10-year Treasury note dipped slightly to 4.34%, and all three major US stock indices surged over 2.5% in response to Trump’s moderated approach.