Latest news with #IndianRupee
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Business Standard
17 hours ago
- Business
- Business Standard
Rupee snaps two-month rally; reverses early gains to end lower at 85.36/$
The Indian Rupee closed weaker for the fourth straight day on Friday, paring its early gains, even as the dollar weakened after US President Donald Trump's tariffs were reinstated. The domestic currency ended 6 paise lower at 85.36 against the US dollar, after closing at 85.52 on Thursday, according to Bloomberg. The currency also snapped two months of gains, as it weakened by over 1 per cent in May. The currency ends stronger ahead of the crucial GDP data scheduled to be released later today. A better-than-expected GDP figure could spark a sharp appreciation in the rupee, particularly amid easing crude oil prices and a weakening dollar, according to Amit Pabari, managing director at CR Forex Advisors. On Thursday, the US Court of Appeals granted the Trump administration's request to temporarily pause the trade court's ruling to block 'liberation day' tariffs. The US economy contracted in the March quarter, the first decline in three years. The dollar index, which measures the greenback against a basket of six major currencies, was up 0.31 per cent at 99.58. With See-saw tariff policies continuing to keep investors on edge, the dollar index has fallen 8 per cent this year. The greenback is heading for its fifth straight monthly loss as traders braced for further bouts of uncertainty around trade and fiscal health, experts said. "We continue with the recommendation to sell dollars near 85.70/75 whenever we get the level, while we buy dollars on a cash basis," Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP, said. "We need to hold hedging imports unless we get a level lower than 85.00 on the dollar rupee pair."
Reuters
19 hours ago
- Business
- Reuters
Rupee flips back to monthly decline, lags Asian peers
MUMBAI, May 30 (Reuters) - The Indian rupee declined by about 1% in May, reversing course after gaining in the previous two months, influenced by factors such as continued uncertainty over U.S. trade policies, gains in its Asian peers and a conflict between India and Pakistan. The rupee closed at 85.5775 on Friday, capping a day of choppy trading with a mild decline. The currency had rallied to a six-month earlier in May but shed its gains through the month. Initially, a military conflict between India and Pakistan hurt the currency but it rebounded once a ceasefire was reached. Over the rest of the month, dollar demand from corporates and foreign banks weighed on the rupee, traders said. Dollar-buying intervention by Reserve Bank of India also put a lid on the sharp appreciation above the 84.60-84.80 zone, according to one of the traders. Meanwhile, the dollar was set to end the month little changed against major peers as mild relief on the softening of U.S. trade policies, typified by the pact with China, gave way to a legal back-and-forth on the legal validity of reciprocal tariffs. Asian currencies were mostly stronger on the month, led by the Korean won while the offshore Chinese yuan, a closely tracked peer of the rupee, rose nearly 1%. Barclays expects the rupee to underperform its peers going forward as the RBI focuses on replenishing FX reserves and is "unlikely to want to see a renewed richening of the INR," analysts at the firm said in a note earlier this week. India's foreign exchange reserves (INFXR=ECI), opens new tab stood at $685.7 billion as of May 16, about $19 billion below their all-time high hit in September 2024. Traders now await the release of India's economic growth data for the January-March quarter and U.S. PCE inflation data due later in the day. Economists polled by Reuters expect India's GDP to have grown 6.7% year-on-year, up from 6.2% in the previous three months.
Reuters
19 hours ago
- Business
- Reuters
Rupee gains as dollar index reverses course on US tariff twist
MUMBAI, May 30 (Reuters) - The Indian rupee gained on Friday, as uncertainty around U.S. tariffs following a temporary reinstatement pulled the dollar index back below the 100-handle. The dollar index had risen to a peak of 100.48 on Thursday after a trade court blocked most of U.S. President Donald Trump's tariffs, but quickly reversed course to fall 0.6% after an appeals court temporarily reinstated the levies as it considered the government's appeal. The rupee , aided by broad weakness in the dollar, rose 0.2% to 85.35 as of 10:40 a.m. IST, nearly the same level it was at before the initial block on the tariffs. The weakness in the dollar also reflected weaker-than-expected labour market data and U.S. consumption data, MUFG Bank said in a note. In the near-term, focus is likely to stay on developments on U.S. trade policies, especially as the end of the 90-day pause on country-specific reciprocal tariffs, starting April 9, draws near. "Our expectation for a trade deal to be struck between India and U.S. beyond the day-to-day uncertainty is a factor underpinning our view for USD/INR to grind lower to 83.50 by 1Q2026, coupled with lower inflation and more supportive domestic policies including rate cuts by RBI," MUFG said. Traders also pointed to dollar selling interest from at least two foreign banks, likely on behalf of custodial clients, which helped lift the rupee. Other Asian currencies were trading flat-to-slightly lower, while India's benchmark equity index, the Nifty 50 (.NSEI), opens new tab, fell about 0.3%, tracking a fall in most regional equities.
Economic Times
a day ago
- Business
- Economic Times
Rupee rises 19 paise to 85.29 against US dollar in early trade
The Indian Rupee saw gains against the US dollar. This rise is attributed to a drop in crude oil prices. Sustained foreign fund inflows also played a role. The rupee strengthened against the US dollar due to lower crude oil prices and sustained foreign fund inflows, despite a firm greenback and volatile stock markets. Market participants remained cautious awaiting domestic GDP data. The dollar index edged higher, while Brent crude declined. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Popular in Markets 1. Dollar poised for fifth-straight monthly drop on trade, fiscal uncertainty The rupee strengthened by 19 paise to 85.29 against the US dollar in early trade on Friday on the back of lower crude oil prices and sustained foreign fund inflows Forex traders said a firm greenback and volatile stock markets capped the rupee's gain even as market participants stayed cautious ahead of the release of domestic GDP the interbank foreign exchange, the domestic unit opened at 85.35 and gained further to trade at 85.29 against the greenback in initial deals, registering a rise of 19 paise from its previous rupee ended 10 paise lower at 85.48 against the dollar on the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading higher by 0.16 per cent at said the dollar's recovery after the US federal court's ruling against President Donald Trump's sweeping reciprocal tariffs proved short-lived as a federal appeals court put a temporary stay on the ruling. Brent crude , the global oil benchmark, declined 0.48 per cent to USD 63.84 per barrel in futures the domestic equity market, the 30-share BSE Sensex fell 35.68 points, or 0.04 per cent, to 81,597.34, while the Nifty was unchanged at 24,833.70. Foreign institutional investors (FIIs) purchased equities worth Rs 884.03 crore on a net basis on Thursday, according to exchange Reserve Bank, in its latest annual report on Thursday, said the country is poised to remain the fastest-growing major economy in the world even in FY26. PTI
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Business Standard
a day ago
- Business
- Business Standard
Rupee snaps three-day fall; opens at 85.36/$ as dollar revival fizzles out
The Indian Rupee gained after three straight days of decline as the revival in the US dollar proved short-lived with the federal appeals court temporarily reinstating US President Donald Trump's tariffs. The domestic currency opened 16 paise stronger at 85.36 against the US dollar, after ending at 85.52 on Thursday, according to Bloomberg. However, the currency is on course to end the month with a depreciation of 0.9 per cent. On Thursday, the US Court of Appeals granted the Trump administration's request to temporarily pause the trade court's ruling to block 'liberation day' tariffs. Further, the higher-than-expected rise in the jobless numbers in the US also pressured the greenback, along with a 0.2 per cent decline in the March quarter economic growth. The dollar index, which measures the greenback against a basket of six major currencies, was up 0.14 per cent at 99.43. With See-saw tariff policies continuing to keep investors on edge, the dollar index has fallen 8 per cent this year. The greenback is heading for its fifth straight monthly loss as traders braced for further bouts of uncertainty around trade and fiscal health, experts said. The rupee is expected to open slightly stronger at 85.32, supported by daily flows, as the market reacts to weakening US jobless claims, which have started to show cracks, pulling down the US 10-year yield, Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP. "We continue with the recommendation to sell dollars near 85.70/75 whenever we get the level, while we buy dollars on a cash basis." India's gross domestic product (GDP) data for the final quarter of the previous financial year will be the key data to watch. The dollar-rupee pair remains in a consolidation zone with resistance near 85.70-85.90 levels and strong support of 84.90-85.10 levels, according to Amit Pabari, managing director at CR Forex Advisors. "A breach on either side could pave a sharp movement in that direction." In commodities, crude oil prices fell after a day of advance after an appeals court temporarily reinstated tariffs. Brent crude price was down 0.48 per cent to $63.84 per barrel, while WTI crude prices were 0.48 per cent lower at 60.65, as of 9:15 AM IST.
