The local currency opened at 85.06 at the interbank exchange and strengthened through the session. It also briefly touched an intraday low of 85.15 before rebounding.
Traders cited strong economic indicators as key support. India’s manufacturing and industrial output both rose 3% in March, showing firm domestic demand. A rally in equities, powered by foreign institutional investor (FII) buying, further boosted sentiment. On Monday (April 28), FIIs net bought shares worth ₹2,474 crore.
However, some caution remains. Traders warned that geopolitical tensions—particularly between India and Pakistan—could reverse gains quickly, as seen in past episodes.
Globally, a softer diplomatic tone added to the rupee’s momentum. US Treasury Secretary Scott Bessent said talks with Asian allies, including India and Japan, are progressing. China, meanwhile, offered tariff exemptions and eased rules on auto imports, signalling a move to reduce trade friction.
“The steps taken by China are helping avoid a full-blown trade war and are easing pressure on global supply chains,” said Amit Pabari, MD, CR Forex Advisors.
Still, the dollar index edged up 0.17% to 99.18. Brent crude futures slipped 0.68% to $65.41 per barrel.
–With PTI inputs
First Published: Apr 29, 2025 11:41 AM IST
