The Indian rupee is set to open higher on Thursday, boosted by the dollar's tumble to multi‑year lows after U.S. President Trump renewed his criticism of Federal Reserve Chair Jerome Powell and reportedly floated plans of his early replacement.

The Indian Rupee staged a powerful comeback on Thursday, closing stronger at 85.70—its firmest level in over a month—thanks to a perfect storm brewing against the U.S. dollar. The Dollar Index tumbled to 97.30, marking a fresh three-year low, and giving emerging market currencies like the INR some much-needed oxygen.

The U.S. dollar fell again today, following President Trump’s attacks on Fed Chair Jerome Powell and reports that Trump may name a replacement for him soon. Investors fear Trump’s influence could undermine Fed independence,