Indian Rupee opens 24 paise lower at 85.52/$; snaps 3-day winning streak

The Indian Rupee opened lower on Thursday, even as the crude oil prices and the dollar index continued to weaken. 

 

The domestic currency began the session 24 paise lower at 85.52 after closing at 85.28 against the greenback on Wednesday, according to Bloomberg data. The currency has remained volatile this month and has fallen by around 1.3 per cent so far. 

 

The current slight gain on Wednesday was driven by India’s Wholesale Price Inflation data, which cooled to a 13-month low of 0.85 per cent in April, according to Amit Pabari, managing director of CR Forex Advisors. With inflation easing, expectations have risen that the Reserve Bank of India (RBI) could consider another rate cut in its June monetary policy meeting.  With the consumer inflation rate staying below the RBI's 4 per cent target for two consecutive months, economists foresee three back-to-back reductions in the policy repo rate, starting with a 25 basis point cut in June.

 

 

 

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. 

 

Meanwhile, the weakness in the dollar index contained after it surged in the early part of the week. It eased losses after the US clarified that it is not seeking to weaken the dollar as part of trade deals. The dollar Index was trading 0.19 per cent lower at 100.84. The index remains well bid and is likely to test higher resistance levels near 102.50-103.00, while immediate support lies around 100.00-100.20, Pabari said. 

 

The Indian trade data is expected to be released today after yesterday's inflation data showed lower retail and wholesale inflation as food prices fell, Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP, said. "The range for today is expected between 85 to 85.75 with dips to the pair to be bought while good upticks as stated above to be sold." 

 

In commodities, crude oil prices extended their fall on reports that US crude inventories rose the most in two months amid rising tensions with Iran. Brent crude price was down 2.32 per cent to $64.56 per barrel, while WTI crude prices were lower by 2.45 per cent at 61.60, as of 9:11 AM.