Rupee Falls 25ps To At 85.44/$

Mumbai: The rupee depreciated 25paise and settled for the day at 85.44 against the US dollar on Wednesday, on surge in crude oil prices and importer demand for the American currency. Forex traders said the American currency recovered, supported by Donald Trump’s softened stance -- particularly towards the Federal Reserve and China. However, positive domestic markets and weak US dollar index and foreign fund inflows supported the domestic unit at lower levels. Forex traders said the market found support after Trump on Tuesday backed off from threats to fire FED Chair Jerome Powell after days of intensifying criticism against him for not cutting rates.

Trump also signalled the possibility of lower tariffs against China. At the interbank foreign exchange, the domestic unit opened at 85.24, and touched an intra-day low of 85.52 against the greenback. The unit ended the session at 85.44, registering a loss of 25paise over its previous closing level. On Tuesday, the rupee settled lower by 4paise at 85.19 against the US dollar. “We expect the rupee to trade with a positive bias amid risk on sentiments in the global markets and FII inflows. Overall weakness in the US dollar may also support the rupee.