Rupee weakened by 10 paise to close at 85.48 (provisional) against the US dollar on Thursday, pressured by a strengthening dollar overseas and a rise in global crude oil prices. Forex traders noted that gains in the domestic equity markets and foreign capital inflows helped limit the local currency’s fall.
At the interbank foreign exchange market, the rupee opened at 85.56 and traded between an intra-day low of 85.62 and a high of 85.40 before settling at 85.48, marking a 10 paise decline from Wednesday’s close of 85.38.
Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, attributed the rupee’s weakness to the firm US dollar index and higher crude prices. “Month-end dollar demand and FII outflows may also pressurise the rupee. USD-INR spot price is expected to trade in a range of Rs 85.15 to Rs 85.80,” he said.
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The dollar index, which measures the US dollar’s strength against six major currencies, rose 0.11 per cent to 99.89. Analysts linked the uptick to a US federal court blocking President Donald Trump’s sweeping reciprocal tariff order, raising hopes for reduced global trade tensions.
Brent crude futures gained 1.25 per cent to trade at $65.71 per barrel.
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Stock market summary
Indian equity benchmarks closed higher in a volatile session on Thursday, coinciding with the weekly derivatives expiry. The Nifty50 index rose 81.15 points or 0.33 per cent to end at 24,833.6, while the Sensex added 320.7 points or 0.39 per cent to close at 81,633.02.
Broader markets outperformed the benchmarks, with both midcap and smallcap indices rising over 0.5 per cent. Foreign institutional investors (FIIs) were net buyers, picking up equities worth Rs 4,662.92 crore on Wednesday, exchange data showed.
Meanwhile, the Reserve Bank of India, in its annual report released Thursday, said India is on track to remain the fastest-growing major economy in FY26. However, separate government data released Wednesday showed industrial output growth slowing to 2.7 per cent in April 2025, weighed down by muted performance in manufacturing, mining, and electricity sectors.
(With inputs from PTI)
