Indian Rupee ends slightly higher at 85.28/$ as crude oil prices fall

The domestic currency ended 6 paise higher at 85.28 after ending at 85.34 against the greenback on Tuesday, according to Bloomberg data

Indian Rupee gave up early gains but closed higher against the US dollar on Wednesday, backed by falling crude oil prices and a weak dollar index. 

 

The domestic currency ended 6 paise higher at 85.28 after closing at 85.34 against the greenback on Tuesday, according to Bloomberg data. The currency opened 21 paise higher on Wednesday but has remained volatile this month and has fallen by around 0.80 per cent so far. 

 

After a rally earlier this week, triggered by the de-escalation of a trade war between the US and China, the dollar index pared gains during the day to fall back near the 100 level. The measure of the value of the US dollar relative to a basket of foreign currencies was down 0.68 per cent at 100.31.

 

 

The dollar slipped back to around 100 levels on Tuesday following the release of the US Consumer Price Index (CPI), which rose by just 2.3 per cent YoY in April, Amit Pabari, managing director at CR Forex Advisors, noted. The softer inflation print increased the likelihood of more rate cuts by the Federal Reserve, triggering weakness in the dollar.   

 

Given the current mix of geopolitical tensions, inflation trends, and shifting global market expectations, volatility in the Dollar-Rupee pair is expected to persist, according to Pabari. 

 

The currency was also buoyed by domestic cues after India’s retail inflation dropped to its lowest level since July 2019, with the year-on-year Consumer Price Index (CPI) for April 2025 recorded at 3.16 per cent. 

 

The latest inflation figures could give the Reserve Bank of India another chance to cut rates next month in its scheduled meeting, according to Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP. Volatility has driven volumes higher, while premiums have declined due to a reduced interest rate differential between the two countries, as US yields have risen and Indian yields have fallen, he said.

 

Crude oil prices fell after rising to a two-week high after US President Donald Trump said that he will bring Iran’s oil exports to zero if a nuclear agreement can’t be reached. Brent crude price was down 1.13 per cent to $65.88 per barrel, while WTI crude prices were lower by 1.21 per cent at 62.90, as of 3:40 PM.