Indian Rupee Continues Upward Trend

The Indian rupee has showcased a significant recovery, rising by 31 paise to close at 85.67 against the US dollar, marking its seventh consecutive session of gains. This surge has effectively erased all losses incurred in 2025, fueled by positive domestic equity trends, foreign capital inflows, and a dip in global crude prices.

Market Dynamics and Analyst Insights

Opening at 85.93, the rupee reached an intraday high of 85.49 and a low of 86.01 before settling at 85.67. Analysts attribute this resilience to strategic dollar sales by foreign banks and exporters, alongside a generally weaker US dollar. Dilip Parmar of HDFC Securities highlights potential support and resistance levels for the USD/INR pair in the near term.

Global and Domestic Indicators

The dollar index slightly declined, while Brent crude prices saw a modest increase. Domestically, the BSE Sensex and Nifty experienced substantial gains, reflecting robust market sentiment. Foreign institutional investors' net equity purchases and an uptick in India's forex reserves further underscore the positive outlook.

Looking Ahead

With easing global concerns and optimism around geopolitical tensions, the reduction in FPI outflows signals a brighter horizon for the Indian economy and its currency.