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3h ago

Rupee Slips to 88.27 as Dollar Rebounds After Fed Cut

Tariff overhang plus shifting FII flows keep pressure on the currency.

Signage is seen outside the LSEG (London Stock Exchange Group) headquarters in Paternoster Square, London, Britain, April 25, 2025. REUTERS/Toby Melville/File Photo
Woman holds British Pound banknotes in this illustration taken May 30, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
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Overview

  • The Federal Reserve lowered its policy rate by 25 basis points to 4.00–4.25% and signaled two more cuts in 2025, while Jerome Powell’s remarks tempered expectations for faster easing.
  • The dollar index swung from a 43‑month low near 96.21 after the FOMC statement to roughly 97.0–97.3 following Powell’s press conference and a sharp drop in US jobless claims.
  • The rupee fell 35 paise to close at 88.20 on Thursday and traded at 88.27 in early Friday deals as domestic equities weakened.
  • Foreign flows were mixed, with FIIs net selling Rs 1,124.54 crore on Wednesday before turning net buyers of Rs 366.69 crore on Thursday, according to exchange data.
  • US–India trade discussions in New Delhi are described as progressing as tariff uncertainty lingers; separately, Pakistan’s rupee notched a 31st straight gain to 281.46 per dollar.