Currency Market News: Rupee gains 7 paise to 85.46 vs US dollar

Rupee appreciated by 7 paise to 85.46 against the US dollar in early trade on Thursday, supported by a weaker American currency, a decline in global crude oil prices, and a positive start in domestic equities.

At the interbank foreign exchange market, the rupee opened at 85.43 and later slipped slightly to 85.46, still 7 paise stronger than Wednesday’s close of 85.53.

According to forex traders, the rupee’s gains were limited due to persistent foreign fund outflows. FIIs pulled out Rs 446.31 crore from domestic equities on Wednesday, as per exchange data.

“The rupee, which gained on Wednesday, opened higher following a dip in the dollar index, though most Asian currencies remained range-bound. The rupee is expected to trade between 85.25 and 85.75, with any dips being bought,” said Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, as quoted by PTI.

Traders also noted that all eyes are now on the consumer price index (CPI) data due later in the day, which could influence the rupee’s movement.

The dollar index, which measures the greenback’s performance against six major currencies, eased 0.07 per cent to 99.02. The dollar slipped on growing expectations of US Federal Reserve rate cuts, following softer-than-expected CPI data. Additionally, US President Donald Trump’s indication that he may extend the July 9 tariff negotiation deadline also weighed on the dollar.

Stock market update

In the domestic stock market, the BSE Sensex gained 108.02 points to 82,623.16 in early deals, while the NSE Nifty rose 38.7 points to 25,180.10.

Meanwhile, Brent crude futures edged lower by 0.09 per cent to $66.81 per barrel.