Dollar Shows Weakness – USD/INR Slides as Trump Criticizes Fed
Dollar takes a hit after Trump targets Fed
The U.S. dollar has dropped to a multi-year low as President Trump criticized Federal Reserve Chair Powell and hinted at replacing him as early as October. The Wall Street reaction sent the dollar index (DXY) falling, and the USD/INR pair slid to around 85.65 today.
Rupee gains traction amid global strength
India’s rupee (INR) strengthened nearly 0.4%, hitting a two-week high at 85.7050 per USD. The shift was supported by broad dollar weakness and Asian currency rallies. India’s 1‑month forward traded at pre-market 85.96–85.98, down from its prior 86.08.
Oil and bond yields add pressure
Brent crude is trading near $68 per barrel, easing pressure on import-driven economies. Meanwhile, the U.S. 10‑year Treasury yield sits at about 4.27%, reinforcing the softer dollar narrative.
What traders should watch next
Market bets now lean toward a Fed rate cut in July. Forex strategists expect USD/INR to hover between 84–86. For Indian forex traders and importers, this may offer a welcome reprieve—but volatility could return if geopolitical tensions flare or oil spikes.