The Indian rupee is on an upward streak, and it surged by 31 paise to 87.04 against the US dollar to mark the strongest level in the last 20 days, in levels which have not been matched since July 30, 2025. This was a major progression of Monday when it closed at 87.35, reflecting the fact that the local currency gained succour both at home and in the international trading scene. Analysts opine that the rupee will trade in a narrow range of 87.20-87.60 throughout the day, which portrays a mixed view of traders who are cautiously optimistic.
The dollar index rose marginally across the globe to 98.21, as investors put expectations on US President Donald Trump as he continues with talks of bringing an end to the war conflict in Ukraine. Dollar moves were driven by expectations of advances in peace talks, and more broadly, various expectations of the monetary policy at the Federal Reserve in the US. The chances of a September rate cut have been reviewed by the traders, and the lower bets have provided some comfort to the greenback.
In the interim, the effect of crude oil prices on sentiment formation in the currency market remained. The Brent crude was trading at about $66.33 a barrel in the morning trades, and this came as a response to the failure to reach a deal between Trump and the Ukrainian President Volodymyr Zelensky, who were meeting. The impact of the decline in crude prices is primarily positive to the Indian balance of payments and import bill, which boosts the value of the rupee.
The stability of the currency in the domestic market and the constant in foreign capital also added to its formidableness. The foreign investors have remained keen to invest in the Indian equities and bonds; thus, the rupee has enjoyed strong inflows in terms of capital, irrespective of the prevailing uncertainties experienced in the world.
In general, the 31 paise rise experienced by the rupee highlights the combination of favourable country specifics on one side, and geopolitical developments on the other. Investors are simply keeping an eye on further progress in the US-Ukraine negotiations and Federal Reserve policy cues that may chart the immediate direction of the rupee.
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