The currency began the session at 85.02 and briefly touched 84.85 in early trade, supported by the dollar’s slide and a rally in Asian currencies, especially the Chinese yuan which hit a seven-month high.
What’s driving the rupee?
The dollar index slipped 0.34% to 98.67, weighed down by global fiscal concerns and softer US trade rhetoric.
Asian currencies gained across the board. The Chinese yuan led the charge, strengthening to 7.1650 per dollar, helping boost regional sentiment.
The RBI’s record ₹2.11 lakh crore dividend to the government continues to support the rupee by easing fiscal pressure.
Strong FII inflows — with net equity purchases of ₹1,794 crore on Friday (May 23) — reflect growing confidence in Indian markets.
Domestic equities opened higher with the Sensex up 631 points and the Nifty up 187 points.
Outlook: cautious optimism
Currency traders expect the rupee to stay in the 84.90–85.30 range this week, driven by global cues and local macro data.
Key domestic data points — including April IIP and Q1 GDP numbers — are due later this week and could shape short-term sentiment.
Despite Friday’s (May 23’s) sharp rebound, the rupee remains one of the weaker performers among Asian currencies this month.
The Korean won, Thai baht, and Indonesian rupiah have posted stronger gains.
–With inputs from Reuters and PTI
First Published: May 26, 2025 10:38 AM IST
