Rupee posts strong start to H2 2025; ends 23 paise higher at 85.53/$

Indian Rupee today: The domestic currency closed 23 paise higher at 85.53 against the dollar, according to Bloomberg

Indian Rupee posted a strong start at the beginning of the second half of the calendar year, as a weak dollar index supported the currency.

 

The domestic currency closed 23 paise higher at 85.53 against the dollar, according to Bloomberg. The unit has depreciated by around 0.21 per cent in June and has fallen by 0.18 per cent in the first six months of the calendar year.

 

Rupee traded positively, supported by a weaker dollar index and sustained crude oil price weakness, according to Jateen Trivedi, VP research analyst - commodity and currency at LKP Securities. "The softer dollar environment has helped the rupee extend its recent rally." 

   

Market participants will closely watch key US data this week, including non-farm payrolls, unemployment rate, and ADP employment data, which could influence dollar direction, Trivedi added. "Rupee is expected to trade in a range of 85.20 to 85.80." 

 

Meanwhile, the dollar index plunged to a more than three-year low on Monday as uncertainty around trade agreements loomed along with the US fiscal deficit concerns. The US dollar index, which measures the greenback against a basket of six major currencies, was down 0.41 per cent at 96.47.

 

Investors are also weighing on a quicker pace of monetary policy easing by the Federal Reserve ahead of a slew of economic data on Friday, according to Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP. Given India’s strong economic fundamentals and a softening US dollar, upticks in the dollar-rupee pair can be viewed as selling opportunities, Bhansali said. 

 

Gross goods and services tax (GST) collections touched their highest-ever level of ₹22.08 trillion in 2024-25, registering a 9.4 per cent growth over the previous fiscal year. The average monthly collection stood at ₹1.84 trillion in FY25, up from ₹1.68 trillion in FY24 and ₹1.51 trillion in FY22.

 

In commodities, crude oil prices fell for the second day, with the focus Opec+ output quotas this weekend. Brent crude price was down 0.18 per cent at $66.62 per barrel, while WTI crude prices were lower by 0.20 per cent at 64.98, as of 3:40 PM IST.