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The rupee on Friday opens at 86.50 against the US dollar, which is 14 paise higher as compared with its previous close of 86.64.
The dollar’s weakness created a favourable environment for the Indian rupee.
Rupee Vs Dollar Today: After hitting almost the 88 mark following a continuous downtrend in the past few months, the Indian rupee has finally staged a sharp recovery in the past 10 days. In the past two days, the domestic currency has recovered as much as 48 paise against the US dollar, as the greenback is set for a third weekly drop amid Trump Tariffs and lacklustre US economic data.
The rupee on Friday opened at 86.50 against the US dollar, which is 14 paise higher as compared with its previous close of 86.64. Moreover, it is 48 paise higher than the rupee’s closing of 86.98 on Wednesday.
“The US Dollar Index fell to a low of 106.44. The dollar was set for a third weekly drop as traders saw that the start of the second Trump innings has been mostly bluster on the tariff front. The dollar nursed broad losses as those who has built long positions in anticipation of a trade war have backed off while Trump equivocates about tariffs,” said Anil Kumar Bhansali, head of treasury and executive director of Finrex Treasury Advisors LLP.
On Thursday, the Indian rupee gained 34 paise against the US dollar.
“The dollar’s weakness created a favourable environment for the Indian rupee,” CR Forex Advisors MD – Amit Pabari said, adding that “India’s robust real yield of 2.39 per cent attracted capital, supported by the Reserve Bank of India’s proactive interventions”.
Investors will await cues from the minutes of the RBI’s monetary policy meeting, that is expected to provide further insights into economic trends and could influence the rupee’s trajectory in the coming days, Pabari added.
“The US dollar index saw a decline below key 106.50 mark as recent economic indicators pointed to a slowdown in the US economy. With the Philadelphia Manufacturing Index a key gauge of manufacturing activity, plummeted from 44.3 to 18.1 in February, signalling a sharp contraction in the sector,” Pabari said.
Brent crude, the global oil benchmark, fell 0.03 per cent to USD 76.46 per barrel in futures trade.
Will Rupee Rise Further?
“The USD/INR pair is expected to face a strong resistance at 86.80 while 86.50 is acting as a critical support zone, A breach below 86.50 could open up path for 85.80-86.00 levels,” he added.
Equity Market, FII Data Today
In the domestic equity market, the 30-share BSE Sensex was trading 281.79 points, or 0.37 per cent, lower at 75,454.17 points, while the Nifty was down 96.75 points, or 0.42 per cent, at 22,816.40 points.
Foreign institutional investors (FIIs) offloaded equities worth Rs 3,311.55 crore on net basis on Thursday, according to exchange data.
Meanwhile, Moody’s Analytics on Thursday said India’s growth will slow to 6.4 per cent in 2025, from 6.6 per cent in 2024, as new US tariffs and softening global demand weigh on exports.
In its report titled ‘Asia-Pacific Outlook: Chaos Ahead’, Moody’s Analytics said growth across the Asia-Pacific economy will slow in 2025 as trade tensions, policy shifts, and uneven recoveries knock the region’s fortunes.
