Indian Rupee Gains 8 Paise Amid Weak Dollar and Falling Crude Prices
- Indian Rupee Opens Higher
- Support from Weak Dollar and Falling Crude Oil
- Opening Rate at 85.44 per US Dollar
The Indian Rupee opened 8 paise higher at 85.44 against the US dollar, extending its gains for the second consecutive day amid a retreat in crude oil prices and a weakening dollar index. The domestic currency had closed at 85.52 on Friday, according to Bloomberg data.
Despite the rupee’s positive start, it has depreciated by approximately 0.22 percent so far in the 2025 calendar year. Experts expect the currency to trade within a broad range of 85 to 86, with a narrower intraday band between 85.25 and 85.75. Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP, noted that the rupee’s strength is unlikely to be affected by Moody’s recent downgrade of the US government’s credit rating.
Asian equity markets edged lower alongside the dollar and US futures after Moody’s Ratings downgraded the US credit rating from AAA to AA1. The downgrade was attributed to concerns over the rising US debt, which Moody’s suggested could worsen under policies like President Donald Trump’s tax cuts. The dollar index, which tracks the greenback against six major currencies, fell by 0.29 percent to 100.80.
However, Treasury Secretary Scott Bessent dismissed the downgrade as a lagging indicator, suggesting that credit rating agencies often fail to anticipate economic shifts in real-time.
While the rupee has maintained relative stability against the US dollar this year, it has weakened considerably against the euro and the British pound. The rupee has fallen 6.83 percent versus the euro and 5.44 percent against the pound, reflecting the strengthening of these European currencies against the greenback.
Crude oil prices also contributed to the rupee’s recovery as they continued to decline amid ongoing discussions aimed at ending the conflict in Ukraine. Brent crude slipped 0.26 percent to $65.24 per barrel, and WTI crude declined 0.16 percent to $62.39 as of 9:15 AM.
Jateen Trivedi, vice president and research analyst at LKP Securities, said the dollar index showed limited directional movement, while crude oil prices remained flat. He added that without any major market triggers, the rupee is expected to trade in a broader range between 85.00 and 85.75 in the near term.
