Indian rupee gained 25 paise on Tuesday to end at 85.51 (provisional) against the dollar, boosted by the general decline of the greenback and investor enthusiasm on the domestic bourses. The gain was a rebound of Monday’s close of 85.76 when the currency depreciated by 26 paise.
The foreign exchange market was observed at 85.66 of the domestic currency, in relation to the U.S. dollar, at the interbank market. It fluctuated between 85.66 and the high of the day, 85.34, before going into a close of 85.51. Currency traders justified rebounds of the rupee by attributing it to the depreciation levels of the U.S. dollar in the international markets, which recorded its lowest levels since February 2022. This drop in the strength of the dollar was after the fears that the central bank’s independence from the Federal Reserve was under threat as the influence of former U.S. President Donald Trump was increasing to the extent that he might lean on the decision of the Federal Reserve on its policy.
Moreover, depreciated international oil prices also contributed to reducing inflationary pressure in India and the rupee was also supported by this factor. The Brent crude, which is the globally used benchmark, fell by 0.24 per cent to 66.58 dollars per barrel in futures trade, giving India some relief to its import-dependent economy.
Regarding equity, the local stock markets were relatively up, with domestic stock indices registering positive gains, thus strengthening the optimism that was witnessed in the market. The BSE Sensex increased by 90.83 points (0.11%) to 83,697.29, whereas NSE Nifty increased by 24.75 points (0.10%) to 25,541.80.
But foreign institutional investors (FIIs) continued to sell and dumped equities worth 831.50 crore on Monday, as per exchange data.
India’s industrial production growth increased at the slowest in nine months to 1.2 per cent in May 2025 on the macroeconomic front. It slipped mainly because the manufacturing, mining and power segment, which was affected by the early arrival of monsoon, has not been doing so well.
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