Rupee reverses early losses even as dollar rises; ends higher at 88.10/$

Indian Rupee today: The domestic currency closed 3 paise lower at 88.10 against the greenback on Friday

The Indian Rupee reversed early losses to end marginally higher on Friday, even as the momentum in the dollar was on the rise. 

 

The domestic currency closed 3 paise lower at 88.10 against the greenback on Friday, after opening weaker at 88.20, according to Bloomberg. So far this year, the rupee has depreciated 2.91 per cent, making it the worst performer among Asian peers. 

Rupee traded range-bound session between 88.02-88.28 as the market absorbed the impact of the Fed’s policy decision and US jobs data, Jateen Trivedi, VP Research Analyst - commodity and currency at LKP Securities, said. "With these key events behind, focus now shifts to the outcome of the ongoing India-US trade discussions, which will be the next major trigger for rupee movement."

 

Jerome Powell cut interest rates by 25 basis points and pencilled in two more reductions this year. Powell said that the labour market is showing growing signs of weakness, stating that revised job numbers mean it is no longer "very solid."  

 

Going ahead, the Fed dot plot indicated two more rate cuts in the rest of 2025, one cut each in 2026 and 2027, and no cuts in 2028. The dollar index, a measure of the greenback against a basket of six major currencies, was up 0.23 per cent at 97.57. 

The Fed’s signal of only one rate cut in 2026 drove the rebound, though concerns over a slowing labour market and higher US inflation from Trump’s tariffs may cap dollar gains, Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP, said. 

 

On the trade front, Chief Economic Advisor (CEA) V Anantha Nageswaran on Thursday expressed confidence that India-US tariff discussions would conclude within the next couple of months. He also said the reciprocal tariff could come down to the earlier-anticipated range of 10-15 per cent.

 

On Tuesday, the chief negotiators of India and the US decided to intensify efforts to reach an early conclusion of a “mutually beneficial” trade deal. However, the lack of confirmation from the US side will keep the pair in the following range, Bhansali said. 

 

In commodities, crude oil prices were lower amid concerns about oversupply and rising US fuel inventories. Brent crude price was down 0.61 per cent at 67.03 per barrel, while WTI crude prices were lower by 0.87 per cent at 63.02 per barrel, as of 3:40 PM IST.