Indian Rupee reverses early losses to end 15 paise stronger at 85.27/$

Indian Rupee recovered early losses to end stronger against the dollar on Thursday, even as crude oil rose with a slight fall in the dollar index. 

 

The domestic currency ended 15 paise stronger at 85.27 after closing at 85.42 against the greenback on Wednesday. During the day, the currency opened 17 paise lower at 85.59 against the dollar, according to Bloomberg data.  

 

The weaker sentiment for the Rupee early in the day came due to heightened geopolitical tensions, following a terror attack in Pahalgam, Jammu & Kashmir, according to analysts. "This marks a significant geopolitical escalation and has injected fresh uncertainty into regional risk perception," Amit Pabari, managing director at CR Forex Advisors. 

 

On the global front, optimism over potential tariff cuts on China cooled after US Treasury Secretary Scott Bessent clarified that President Donald Trump has not offered to reduce the levies unilaterally, despite reports suggesting the White House is considering slashing some tariffs by more than half. The dollar index — a measure of the value of the US dollar relative to a basket of foreign currencies — was down 0.46 per cent at 99.38, as of 3:40 PM IST. 

 

Foreign portfolio investors continued to buy equities for the sixth consecutive day on Wednesday. Global funds bought stocks worth ₹3,332.93, taking the four-day purchase to over ₹21,200 crore.  

 

The Reserve Bank of India (RBI) will be keenly watched while geopolitical tensions in the sub-continent rose due to Pahalgam attacks by terrorists the day before yesterday, Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said. The Rupee is expected to remain in a range of 85.25/85.75 with upticks to the dollar getting sold off as unhedged exporters hedge their currency receivables while importers have already hedged their near-term positions, he said. 

 

Crude oil prices remained on the higher side during the day as investors weighing a potential Opec+ output increase amid mixed tariff signals. Brent crude oil was up 0.45 per cent to $66.42 per barrel, while WTI crude was up 0.64 per cent at 62.67 per barrel as of 3:45 PM IST.