In early losses, the Indian Rupee staged a comeback against the US dollar; however, it strengthened further from Thursday’s closing level as foreign inflows continued and crude stayed up.
Domestic currency ended at 85.27 on the US dollar, 15 paise more than that quoted on Wednesday, when it ended at 85.42 in the domestic currency. Exchange data indicated the Rupee was weaker in the morning session when it opened at 85.59 and 17 paise, but it recovered its losses throughout the day.
The US dollar pulled back somewhat, largely on a 0.46 per cent drop in the dollar index, which measures the dollar’s strength against six major currencies, to 99.38 by 3:40 PM IST (0800 GMT). After US Treasury Secretary Scott Bessent said President Donald Trump has not offered to unilaterally cut tariffs on China as reported by some outlets seeking to slash American duties by more than half, the decline followed. However, this development tempered optimism that trade tensions between the two global economic titans would be eased in the short term.
It also maintained a positive sentiment on the domestic front, where foreign portfolio investors (FPIs) went on a shopping spree in the equity markets for the sixth consecutive session. Global investors had bought equities worth ₹3,332.93 crore on Wednesday itself, and the total four-day inflow was over ₹21,200 crore, which had helped the Rupee trade higher.
Meanwhile, crude oil prices remained on their stride on Thursday. The Brent crude was trading 0.45 percent higher at $66.42 per barrel, and the WTI crude was 0.64 percent higher at $62.67 per barrel, as of 3:45 PM IST. Both investors were watching OPEC+ signals for a potential output hike and signals on US-China trade developments, which had been mixed.
But despite the uncertainties in the global markets, the Rupee extended its positive streak on strong foreign fund flows and dollar weakness.
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