Indian rupee opened 16 paise down on May 29 after the dollar index gained strength. The local currency traded at 85.53 against the US dollar at open as compared to 85.37 against the greenback at previous.
Dollar index, which measures the greenback's strength against a basket of six major currencies, gained strength after the US court blocks trump tariffs.
Dollar index was trading at 100.228 in early trade, as compared to 99.875 at previous trading session.
On May 28, US trade court blocked President Donald Trump's tariffs from going into effect, ruling that the president overstepped his authority by imposing across-the-board duties on imports from nations that sell more to the United States than they buy.
The Manhattan-based Court of International Trade said the U.S. Constitution gives Congress exclusive authority to regulate commerce with other countries that is not overridden by the president's emergency powers to safeguard the U.S. economy, as per Reuters report.
”The court does not pass upon the wisdom or likely effectiveness of the President's use of tariffs as leverage. That use is impermissible not because it is unwise or ineffective, but because [federal law] does not allow it,” a three-judge panel said in the decision.
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