The Indian rupee rose by 14 paise to 86.81 against the US dollar in early Thursday trading. This rise comes amid a weaker US dollar and lower crude oil prices globally. The rupee opened at 86.82 and further strengthened to 86.81, reflecting a modest gain from its previous close. On Wednesday, the domestic currency ended 16 paise lower at 86.95. Positive Domestic Factors At Play The Indian rupee found support from the recovery in domestic equity markets. Positive inflation data released by the government on Wednesday helped stabilize investor sentiment. […]
Indian Rupee Gains Ground, Reaches 86.81 Against US Dollar as Crude Prices Decline
The Indian rupee rose by 14 paise to 86.81 against the US dollar in early Thursday trading. This rise comes amid a weaker US dollar and lower crude oil prices globally. The rupee opened at 86.82 and further strengthened to 86.81, reflecting a modest gain from its previous close. On Wednesday, the domestic currency ended 16 paise lower at 86.95.
The Indian rupee found support from the recovery in domestic equity markets. Positive inflation data released by the government on Wednesday helped stabilize investor sentiment. The recovery followed a series of foreign fund outflows, which had pressured the rupee in recent weeks. Analysts point to the improving inflation figures as a key factor boosting market confidence.
Read More: Centre Allocates Rs 19,499 Crore For Road Development In Northeast India
The US dollar index, which tracks the greenback against six major currencies, was down 0.22% at 107.59. Analysts believe the weaker dollar is a result of higher-than-expected inflation data in the US. This data dampened expectations of immediate monetary easing by the Federal Reserve. As a result, the greenback lost some strength, benefiting the rupee.
A significant factor contributing to the rupee’s appreciation is the drop in global crude oil prices. Brent crude, the international oil benchmark, fell by 1% to USD 74.43 per barrel. Lower oil prices ease pressure on India’s trade balance and reduce the import bill, which is supportive of the rupee.
On the domestic front, Indian equity markets showed resilience. The 30-share BSE Sensex rose by 167.97 points, or 0.22%, to 76,339.05 points. The Nifty also gained 45.15 points, or 0.20%, to reach 23,090.40 points. Despite foreign institutional investors (FIIs) selling Rs 4,969.30 crore worth of equities on Wednesday, the equity market managed to stay positive.
Read More: Union Budget 2025: Big Relief For Home Loan Borrowers; EMI Cut By 1.8%!
Experts believe the rupee’s recovery may continue if global crude prices remain subdued. However, concerns over foreign fund withdrawals could weigh on the currency in the longer term. The direction of the US dollar will also play a critical role in determining the rupee’s strength.
In conclusion, the rupee’s upward movement is a reflection of multiple factors. These include a weaker dollar, easing crude oil prices, and domestic equity market recovery. However, the ongoing foreign fund outflows remain a concern for the currency’s future stability.
