Rupee jumped 25 paise to 85.08 against the US dollar in early trade on Friday, buoyed by robust foreign fund inflows and positive remarks from the US Treasury Secretary indicating India could be the first to sign a trade tariff treaty with the US.
Forex analysts noted that India is emerging as a symbol of “quiet strength,” supported by improving macroeconomic fundamentals and increasing global interest. The Reserve Bank of India, in its latest bulletin, highlighted the country’s growing economic resilience, pointing to diversified trade ties and favourable market sentiment.
A potential trade pact with the US is also seen as a major strategic win for India, strengthening its position in global commerce.
At the interbank foreign exchange market, the rupee opened at 85.17, slipped to an intraday low of 85.19, and climbed to a high of 85.08 against the greenback—marking a 25-paise gain from its previous close. On Thursday, the rupee had already risen by 12 paise to close at 85.33.
“Despite strong domestic fundamentals, the rupee faces short-term pressure due to a strong dollar and persistent geopolitical concerns. The USDINR pair may find support near 85.20 and resistance at 85.60. A breakout could push it to 85.80,” said Amit Pabari, Managing Director at CR Forex Advisors.
In a boost to trade optimism, US Treasury Secretary Scott Bessent reportedly stated that India may soon become the first country to secure a bilateral trade agreement to bypass President Donald Trump’s reciprocal tariffs.
Currently, a 26 per cent ‘reciprocal’ tariff on Indian exports is under a 90-day freeze, which is set to lapse on July 8. India remains subject to a 10 per cent tariff under existing US trade policy.
Meanwhile, the US dollar index, which tracks the currency against a basket of six major peers, was up 0.38 per cent at 99.75. Brent crude futures also edged higher by 0.54 per cent to trade at USD 66.91 per barrel.
