Indian Rupee opens 8 paise higher at 85.44/$ as oil, dollar retreat

The Indian Rupee extended its rise for the second day on Monday, taking support from a weak dollar index and falling crude oil prices. 

 

The domestic currency opened 8 paise higher at 85.44 after ending at 85.52 against the greenback on Friday, according to Bloomberg data. The rupee has depreciated by around 0.22 per cent in the current calendar year (CY26) so far. 

 

Indian Rupee, which had closed higher on Friday, is expected to open a tad stronger as there has hardly been any effect of Moody's downgrade on the US debt, according to Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP. "We expect the rupee to trade on a wide band of 85/86 and a slightly narrow band of 85.25/75 for the day."

 

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  Asian equities edged lower alongside the dollar and US futures contracts after Moody’s Ratings slashed the US government's credit rating. The dollar Index, which measures the greenback against a basket of six major currencies, was trading 0.29 per cent lower at 100.80. 

 

Moody's downgraded the US rating from a top-tier rating of AAA to AA1, citing concerns over the ballooning debt that could worsen under President Donald Trump's tax cuts. 

 

However, Treasury Secretary Scott Bessent said in an interview that "Moody’s is a lagging indicator — that’s what everyone thinks of credit agencies," downplaying any debt concerns. 

 

The rupee has held its ground against the US dollar in the 2025 calendar year so far, but depreciated significantly against the euro and pound. It fell by 6.83 per cent, and 5.44 per cent against the euro and pound, respectively, as the two currencies strengthened significantly against the greenback during the period. READ MORE 

 

Crude oil prices continued to trade lower amid talks to end the Ukraine war. Brent crude price was down 0.26 per cent to $65.24 per barrel, while WTI crude prices were lower by 0.16 per cent at 62.39, as of 9:15 AM.

 

The dollar index hovered around 100.70, showing limited directional bias, while crude oil prices also remained flat, Jateen Trivedi, VP research analyst - commodity and currency at LKP Securities. "With no major triggers, the rupee is expected to continue trading within a broader range of 85.00 to 85.75 in the near term."