Rupee drops for third session amid higher oil prices; opens at 88.72/$

Indian Rupee today: The domestic currency opened 6 paise lower at 88.72 against the greenback on Friday

The Indian rupee weakened for a third straight session on Friday, with cooling inflation and rising rate-cut expectations failing to lift market sentiment.

 

The domestic currency opened 6 paise lower at 88.72 against the greenback on Friday, according to Bloomberg. The Rupee has risen 0.06 per cent this month, while it has fallen 3.63 per cent this year, amongst the worst-performing Asian currencies. 

 

The Reserve Bank of India (RBI) has actively intervened near 88.63-88.73 over the past four days, even as global funds continue selling Indian equities and buying dollars despite rising markets, Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP, said. Uncertainty around the long-pending India-US trade deal has kept the rupee’s reaction muted, he added. 

 

   

The rupee struggled to find strength on Thursday, even though the broader global environment looked friendly, according to Amit Pabari, managing director at CR Forex Advisors. The US dollar moved lower, a condition that usually helps the rupee gain some ground. Yet, the currency couldn’t quite pick up momentum, he added. 

 

With talk of a possible rate cut gaining a bit of ground, the rupee failed to gain some strength, even as the global backdrop looked supportive, Pabari said. "For now, the USD/INR pair is expected to trade within a stable band of 88.40–88.80. Resistance remains near 88.80–89.00. If the pair breaks below 88.40, it may open the door toward 87.70–88.00, signalling further rupee strength."

 

Moody’s Ratings said on Thursday that India’s economy is expected to grow by around 6.5 per cent through 2027. The agency kept its forecast for gross domestic product (GDP) growth at 6.4 per cent in 2026 and 6.5 per cent in 2027.  India’s growth will continue to be strong because of heavy investment in infrastructure, rising consumer spending, and diversified exports, even though private companies are still cautious about spending, it said. 

 

The US dollar index eased to its lowest level in nearly two weeks, after US President Donald Trump approved a deal to reopen the government after a record shutdown. The measure of the greenback against a basket of six major currencies was up 0.01 per cent at 99.16.

 

In commodities, crude oil prices rose despite the concerns of oversupply still influencing the market, analysts said. Brent crude price was up 1.97 per cent at 64.25 per barrel, while WTI crude prices were higher by 2.16 per cent at 59.96 per barrel, as of 9:01 AM IST.