Rupee trims losses after S&P Global rating upgrade; ends at 87.55/$

India Rupee today: The domestic currency closed 11 paise lower at 87.55 against the greenback on Thursday

The Indian Rupee avoided sharp losses on Thursday after a rating upgrade from S&P Global helped erase declines later in the day.

 

The domestic currency closed 11 paise lower at 87.55 against the greenback on Thursday, according to Bloomberg. The unit fell as low as 87.67 during the day, but saw a sharp recovery post the ratings upgrade. 

 

Credit rating agency S&P Global upgraded India's long-term unsolicited sovereign credit ratings to 'BBB' from 'BBB-' on Thursday, citing economic resilience and sustained fiscal consolidation. It revised the outlook on India's rating in May last year to positive from stable on robust growth and improved quality of government expenditure.

 

"The upgrade of India reflects its buoyant economic growth, against the backdrop of an enhanced monetary policy environment that anchors inflationary expectations," the rating agency said in a statement.

 

The rupee has depreciated by 2.4 per cent in the current financial year so far, whereas it has weakened by 2.27 per cent in the current calendar year so far.  

 

Foreign portfolio investors (FPIs) remained net sellers in the equity market, having sold ₹18,710 crore so far this month. 

 

With expectations of a US Federal Reserve rate cut pulling the dollar index lower, the rupee could gradually strengthen towards 87.00, depending on the outcome of Friday's US–Russia summit, said Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP. 

 

Trump warned Putin of "very severe consequences" if the Russian leader didn't agree to a ceasefire. Meanwhile, US Treasury Secretary Scott Bessent cautioned that the current 25 per cent secondary tariff on India could increase if the Trump-Putin meeting fails to make headway.

 

The dollar index, a measure of the greenback against a basket of six major currencies, was up 0.03 per cent at 97.86.

 

In commodities, crude oil rose but was near a two-month low after the International Energy Agency said the market is on track for record oversupply next year. Brent crude price was up 0.53 per cent at $65.98 per barrel, while WTI crude prices were higher by 0.56 per cent at $63, as of 3:40 PM IST.