Indian rupee opens 13 paise higher at 87.39 against the dollar, tracking Powell's comments

Indian rupee

The Indian rupee opened 13 paise up at 87.2950 against the US dollar on August 25 as compared to 87.5275 against the greenback at previous close.

The Dollar index, which measures the greenback's strength against a basket of six major currencies, fell 97.88 in the early trade as compared to 98.62 in the previous week.

"The dollar index rose to 97.89 on 25/08/2025 recovering by about 0.22% from the previous session after dropping sharply last week due to FED signal of Potential Rate cut," said Anil Kumar Bhansali,
Head of Treasury and Executive Director at Finrex Treasury Advisors LLP. The Dollar index eased after the US Fed chair left the door open on a September rate cut.

on Friday, US Federal Reserve Chair Jerome Powell, without giving hint on the timing of a rate cut, suggested that the central bank will proceed cautiously as it continues to evaluate the impact of tariffs and other policies on the economy.

In a high-profile speech closely tracked at the White House and on Wall Street, Powell said that there are risks of both rising unemployment and stubbornly higher inflation. That puts the Fed in a tough spot, because it would typically cut its short-term rate to boost hiring, while keeping it high - or raising it - to fight inflation.