Donald Trump's Policies Shake the Dollar as Indian Rupee Gains Ground

Since Donald Trump became the President of the United States, his controversial and erratic statements have negatively impacted the U.S. stock market and the dollar. Moreover, ever since Trump initiated trade wars with countries across the globe, the situation has worsened significantly.

Due to these developments, the U.S. Dollar Index dropped to its lowest point in 45 years, reaching the level of 97 on Wednesday, July 9, 2025. According to data, the dollar has fallen by nearly 11 percent in the first half of the year — the steepest six-month decline since 1980. Experts believe that the ongoing implementation of Trump’s policies has played a major role in the dollar’s decline, and they warn that this downward trend could continue in the coming days.

Indian Rupee Outperforms the Dollar

In the interbank foreign exchange market, the Indian rupee closed at 85.69 (provisional) per dollar on Thursday, registering a gain of four paise. Currency traders said that optimism over a potential agreement between India and the United States helped strengthen the rupee against the U.S. dollar.

The rupee opened stronger at 85.62 per dollar in the interbank forex market. During the day, it traded in the range of 85.53 to 85.69 per dollar, before finally closing at 85.69 (provisional), a four paise gain from the previous close. On Wednesday, the rupee had closed steady at 85.73 per U.S. dollar.

Slight Decline in Indian Stock Market

Meanwhile, the U.S. Dollar Index — which measures the dollar against six major world currencies — slipped by 0.15 percent to 97.41. The BSE Sensex, which includes 30 important firms, dropped 345.80 points to settle at 83,190.28 on the domestic front.  The NSE Nifty ended the day at 25,355.25, down 120.85 points.

International benchmark Brent crude also declined by 0.34 percent, trading at $69.95 per barrel. According to stock market data, Foreign Institutional Investors (FIIs) were net buyers on Wednesday, purchasing shares worth ₹77 crore.