Rupee gains as dollar slump extends; opens 15 paise higher at 85.61/$

Indian Rupee today: The domestic currency opened 15 paise higher at 85.61 against the dollar, according to Bloomberg

The Indian Rupee advanced after a one-day fall to open the second half of the calendar year on a positive note amid a weak dollar index. 

 

The domestic currency opened 15 paise higher at 85.61 against the dollar, according to Bloomberg. The unit has depreciated by around 0.21 per cent in June and has fallen by 0.18 per cent in the first six months of the calendar year. 

 

The rupee weakened Monday amid sustained dollar buying by nationalised banks, likely on behalf of the Reserve Bank of India (RBI) and oil companies, according to Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP. "A trading range of 85.35–85.95 appears likely for the day. The return of excess funds from the HDB Financial IPO and exporter hedging near 86.00 could cap further upside in the dollar."

 

   

Markets now await global PMI releases, US non-farm payroll data on Friday, and US President Trump’s stance on the July 9 tariff deadline. 

 

On the macro front, gross goods and services tax (GST) collections touched their highest-ever level of Rs 22.08 trillion in 2024-25, registering a 9.4 per cent growth over the previous fiscal year. The average monthly collection stood at ₹1.84 trillion in FY25, up from ₹1.68 trillion in FY24 and ₹1.51 trillion in FY22.

 

Given India’s strong economic fundamentals and a softening US dollar, upticks in the dollar-rupee pair can be viewed as selling opportunities, Bhansali said. 

 

Meanwhile, the dollar index plunged to a more than three-year low on Monday as uncertainty around trade agreements loomed along with the US fiscal deficit concerns. The US dollar index, which measures the greenback against a basket of six major currencies, was down 0.17 per cent at 96.71.

 

Investors are also weighing on a quicker pace of monetary policy easing by the Federal Reserve ahead of a slew of economic data on Friday, analysts said. 

 

In commodities, crude oil prices fell for the second day, with the focus Opec+ output quotas this weekend. Brent crude price was down 0.24 per cent at $67.61 per barrel, while WTI crude prices were lower by 0.48 per cent at 64.80, as of 9:20 AM IST.