Rupee rises to two-week high as dollar weakens on Trump-Fed rate cut talk

Trump's remarks on Powell spur Fed rate cut hopes; rupee hits over two-week high at 85.71, though gains capped by RBI intervention via PSU banks

The rupee appreciated sharply on Thursday, tracking a decline in the dollar index after US President Donald Trump suggested that Federal Reserve (Fed) Chair Jerome Powell could soon be replaced, fanning expectations of a rate cut as early as July. The remark sparked concerns over the future independence of the Fed, said dealers.

 

The local currency appreciated to 85.63 per dollar during the day before settling at 85.71 against the greenback, its highest level since June 12 this year. Market participants said the Reserve Bank of India (RBI) intervened in the foreign exchange market via dollar purchases, which capped gains.