"us-dollar"

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.

According to forex traders, market sentiment took a hit due to rising geopolitical tensions following a terror attack in Pahalgam, Jammu & Kashmir. On the international front, the US dollar index rebounded sharply, climbing from a recent low of 97.92 to 99.94. This recovery was fueled by renewed optimism over a possible easing of trade tensions between the US and China, they noted.

Forex traders noted that market sentiment improved after Donald Trump, on Tuesday, stepped back from his earlier threats to dismiss Federal Reserve Chair Jerome Powell, following days of escalating criticism over Powell’s reluctance to cut interest rates. Trump also hinted at the potential for reduced tariffs on Chinese goods.

According to the India Bullion and Jewellers Association (IBJA), the price of 24-carat gold rose sharply from Rs 96,670 to Rs 1,00,000 per 10 grams -- a jump of Rs 3,300 within 24 hours

According to forex traders, the local currency came under pressure due to weak sentiment in the equity markets and a modest rebound in crude oil prices. At the interbank foreign exchange, the rupee opened at 85.48 and eased to 85.54 against the US dollar in early trade, marking a 10 paise gain from its previous close.

Forex traders noted that encouraging macroeconomic data, combined with the 90-day relief from US reciprocal tariffs, spurred foreign investors to buy into domestic equities, which in turn boosted the local currency.

In early trade at the interbank foreign exchange, the rupee opened at 86.22 against the US dollar, marking a gain of 46 paise from its previous close. It later strengthened further to 86.17. On Wednesday, the local currency had settled at 86.68 against the greenback.

Forex traders noted that even with a sharp decline in crude oil prices and a weakening US dollar, concerns over a potential global trade war continued to spark fears of an economic downturn, triggering foreign fund outflows and leaving stock markets in a state of shock.

The rupee’s rebound has been driven primarily by a decline in crude oil prices and the weakening of the US dollar in global markets. According to forex traders, the greenback lost ground due to growing concerns over inflationary pressures, triggered by tariffs and the looming threat of a potential recession in the United States.

According to forex dealers, foreign investors have injected over USD 2 billion into Indian equities over the past four days, while month-to-date inflows into Indian bonds have surpassed USD 3 billion. However, the local currency's sharp appreciation remained limited as investors weighed the potential economic impact of rising global trade concerns.

Forex traders attributed the rupee’s gains to FPIs becoming net buyers in equities for the second time this week while making substantial investments in debt. At the interbank foreign exchange, the rupee opened at 86.26 against the US dollar, strengthened further, and reached 86.19, marking an appreciation of 17 paise from its previous close.

Forex traders noted that the Indian rupee has pushed back against external pressures, bolstered by strong foreign inflows into debt markets. However, persistent foreign institutional investor sell-offs and uncertainty over Trump's tariff stance could still threaten the rupee's upward trajectory.

Forex analysts noted that rising global tariff tensions kept driving foreign capital outflows, but the local currency gained support from a weaker U.S. dollar index and lower crude oil prices.

Forex analysts note that the local currency faced additional pressure from a strengthening U.S. dollar index and a rebound in crude oil prices, compounding the impact of selling in domestic equities and the ongoing outflow of foreign capital.

A lackluster domestic equity market and continuous foreign fund outflows exerted pressure on the local currency. However, easing crude oil prices provided some support, according to forex traders. At the interbank foreign exchange, the rupee opened weaker at 87.24 amid high volatility, hitting a low of 87.34 before stabilizing at 87.25 against the US dollar in early trade, marking a 30-paise decline from its previous close.

Forex traders noted that the local currency initially gained support following the US decision to postpone higher tariffs on Canada and Mexico. Additionally, the RBI's move to inject Rs 1.9 trillion liquidity into the banking system further strengthened the domestic unit. However, they added that volatile equity markets dampened sentiment, dragging the currency into negative territory.

The rupee is expected to trade in a range of 86.35-75 as the market gives opportunity for both exporters and importers to sell and buy their currencies: Anil Kumar Bhansali

Domestic benchmark indices too opened lower on Monday as US President Donald Trump threatened to start imposing new 25 per cent tariff on all steel and aluminium imports

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GTRI says depreciating domestic currency will increase India's gold import bill, especially as global gold prices have jumped 31.25 per cent, rising from USD 65,877 per kg in January 2024 to USD 86,464 per kg in January 2025