The Indian rupee weakened by 7 paise to 85.45 against the US dollar in early trade on Thursday, as the greenback strengthened following a US federal court's decision to block former President Donald Trump's sweeping reciprocal tariff order. The ruling has raised hopes of easing global trade tensions, boosting the dollar's appeal.
The rupee also came under pressure from rising crude oil prices in the international market and weaker-than-expected domestic industrial output data for April. However, sustained foreign fund inflows and a positive trend in domestic equities helped limit further depreciation, according to forex traders.
At the interbank foreign exchange market, the rupee opened at 85.56 and later recovered slightly to trade at 85.45 per dollar in early deals, marking a 7 paise drop from its previous close.