After three consecutive sessions of losses, the rupee bounced back sharply on Friday, appreciating by 70 paise to settle at 85.25 (provisional) against the US dollar. The recovery was fuelled by a drop in the dollar index and a strong rally in domestic equities, reflecting renewed investor interest in riskier assets.
Forex traders pointed to a significant shift in global market sentiment, where easing US treasury yields and strength in global equities spurred risk-on behaviour. This led to a decline in the dollar index, which slipped 0.60 per cent to 99.36.
The rupee had lost 53 paise over the past three trading sessions, but managed to reverse the trend amid improved global cues. It opened at 85.95, touched an intra-day high of 85.11 and a low of 86.10 at the interbank foreign exchange market before closing at 85.25 marking a strong rebound from Thursday’s close of 85.95.
“We expect the rupee to trade with a positive bias on underlying weakness in the US dollar index and improved global risk sentiments. However, selling pressure from foreign investors may cap sharp upside movement,” said Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan.
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Caution remains on crude, FII moves
Despite the upbeat mood, forex market volatility remained high. Traders flagged rising crude oil prices and persistent foreign fund outflows as downside risks for the local currency. Brent crude futures were down 0.22 per cent at $64.30 per barrel, offering mild relief, but not enough to fully counterbalance FII selling pressure.
“USD-INR spot price is expected to trade in a range of 85 to 85.70,” added Choudhary, highlighting the cautious optimism among traders.
Meanwhile, foreign institutional investors (FIIs) pulled out Rs 5,045.36 crore worth of equities on Thursday, according to exchange data a factor that could weigh on the rupee in the near term.
Also Read: Currency Market News: Rupee weakens 15 paise to 86.10 vs US dollar
Sensex, Nifty close on a high
On the equities front, the domestic market rallied on Friday. The BSE Sensex surged 769.09 points (0.95 per cent) to end at 81,721.08, while the NSE Nifty jumped 243.45 points (0.99 per cent) to close at 24,853.15 supporting the rupee’s upward movement.
(With inputs from PTI)
Anurag Dhole is a seasoned journalist and content writer with a passion for delivering timely, accurate, and engaging stories. With over 8 years of experience in digital media, she covers a wide range of topics—from breaking news and politics to business insights and cultural trends. Jane's writing style blends clarity with depth, aiming to inform and inspire readers in a fast-paced media landscape. When she’s not chasing stories, she’s likely reading investigative features or exploring local cafés for her next writing spot.
- ANURAG DHOLEhttps://indiatadkha.com/author/bitlancetechhubgmail-com/
- ANURAG DHOLEhttps://indiatadkha.com/author/bitlancetechhubgmail-com/
- ANURAG DHOLEhttps://indiatadkha.com/author/bitlancetechhubgmail-com/
- ANURAG DHOLEhttps://indiatadkha.com/author/bitlancetechhubgmail-com/
