Rupee rises 25 paise against dollar amid foreign inflows, hopes of US trade pact
Forex traders said India is presenting a picture of quiet strength. The Reserve Bank of India, in its recent bulletin, emphasised India's growing economic resilience, driven by strong macro fundamentals, diverse trade ties, and rising global interest in Indian markets.
Mumbai: The rupee gained 25 paise to 85.08 against the US dollar in early trade on Friday, supported by significant foreign fund inflows and the rhetoric from the US trade secretary that India could be the first to sign a trade tariff treaty.
Forex traders said India is presenting a picture of quiet strength. The Reserve Bank of India, in its recent bulletin, emphasised India’s growing economic resilience, driven by strong macro fundamentals, diverse trade ties, and rising global interest in Indian markets.
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A prospective trade agreement with the US further boosts India’s strategic edge, they noted.
At the interbank foreign exchange, the domestic unit opened at 85.17 and fell to an intraday low of 85.19 and a high of 85.08 against the greenback, registering a gain of 25 paise over its previous close.
On Thursday, the rupee gained 12 paise to 85.33 against the US dollar.
“Despite strong domestic fundamentals, the rupee faces near-term pressure from a firm dollar and lingering geopolitical risks. The USDINR pair is expected to find support around 85.20 and resistance at 85.60, with a breakout potentially pushing it toward 85.80,” CR Forex Advisors MD Amit Pabari said.
US Treasury Secretary Scott Bessent has reportedly said he expects India to strike the first bilateral trade deal to avoid President Donald Trump’s reciprocal tariffs.
A 26 per cent ‘reciprocal’ tariff on Indian exports to the US is currently on a 90-day pause, set to expire on July 8. However, like other countries, India is presently subject to a 10 per cent tariff under the existing policy.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading higher by 0.38 per cent at 99.75.
Brent crude, the global oil benchmark, rose 0.54 per cent at USD 66.91 per barrel in futures trade.
In the domestic equity market, the 30-share BSE Sensex slumped 73.22 points or 0.09 per cent to 79,728.21, while the Nifty fell 32.85 points or 0.14 per cent to 24,213.85.
Foreign institutional investors (FIIs) bought equities worth Rs 8,250.53 crore on a net basis on Thursday, according to exchange data.
