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On Monday, 19 May 2025, the Indian rupee started the day stronger, rising by 8 paise to reach ₹85.44 against the US dollar. This increase happened because global crude oil prices fell and the US dollar weakened. This is the second day in a row that the rupee has gained value after closing at ₹85.52 last Friday.
Why Did the Rupee Strengthen?
The rupee’s rise was mainly due to two important reasons: lower crude oil prices and a weaker US dollar. Oil prices affect the rupee because India imports a large amount of oil, and when oil becomes cheaper, it reduces the country’s import bill, which helps strengthen the rupee.
- Brent Crude oil price dropped to $65.17 per barrel, down by 0.37%.
- WTI Crude oil price also fell to $62.33 per barrel, down by 0.26%.
At the same time, the US dollar became weaker compared to other major currencies. The Dollar Index, which tracks the dollar’s strength against six other important currencies, fell by 0.29% to 100.80. One reason for the dollar’s decline was Moody’s lowering the US government’s credit rating from AAA to AA1. This downgrade happened because of worries about the growing US debt.
What Does This Mean for the Rupee?
Even though the rupee has gained recently, it is still down by around 0.22% since the start of 2025. Experts say the rupee looks stable for now, but its future value will depend on many things happening globally and within India. These include oil prices, the strength of the US dollar, economic reports, and political events.
What Should Investors Watch?
The rupee’s recent rise shows how sensitive it is to changes in the world market. Investors will be paying close attention to new economic data and any global political news, as these will impact the rupee’s movement in the coming days.