Today Indian Rupee opened Stronger against US Dollar

On Monday, the Indian rupee opened stronger against the US dollar, gaining 12 paise to start at ₹85.33, compared to its previous closing rate of ₹85.45. This improvement in the rupee’s value is mainly due to two key factors: continued foreign investments in Indian stocks and a drop in global crude oil prices. Despite ongoing geopolitical tensions, these positive developments have helped support the rupee.

Foreign Investments Boost the Rupee

Foreign investors have shown strong confidence in the Indian stock market, continuing to buy Indian equities for the eighth consecutive day. On Friday alone, foreign funds bought shares worth ₹2,952.33 crore, contributing to a total investment of ₹32,500 crore over the last eight days. This steady inflow of foreign portfolio investments (FPIs) is one of the main reasons the rupee is holding its ground. Foreign investors are also helping the rupee by selling dollars whenever the value of the US currency rises, which in turn strengthens the rupee.

Decline in Crude Oil Prices Supports the Currency

Another key factor supporting the rupee is the decline in crude oil prices. As of 10:10 AM IST, Brent crude oil was priced at $67.10 per barrel, while WTI crude was at $63.28 per barrel. The fall in oil prices is a relief for India, as the country relies heavily on oil imports. Lower oil prices reduce the overall cost of imports, which helps stabilize the rupee.

Geopolitical Tensions and Their Impact on the Rupee

Last week, the rupee faced pressure due to rising tensions between India and Pakistan after a ceasefire violation along the Line of Control (LoC) by Pakistan, which followed a terror attack in Pahalgam. Despite these geopolitical tensions, the rupee showed some relief at the start of the week, as there were no major developments over the weekend.

What’s Next for the Indian Rupee?

Experts believe that the dollar-rupee exchange rate will continue to fluctuate in the short term. However, India’s strong economic fundamentals, such as increasing foreign exchange reserves and consistent capital inflows, are expected to support the rupee. The technical outlook for the rupee suggests that it has strong support between ₹85.00 and ₹85.20. If the rupee maintains its strength, it could move towards a range of ₹85.80 to ₹86.20.

Global Market Factors Affecting the Dollar

The dollar index, which measures the value of the US dollar against a basket of foreign currencies, was up by 0.19% at 99.66 as of 9:15 AM IST. The ongoing global trade tensions are keeping the dollar index around the 99 mark, which indirectly benefits the rupee by preventing the US dollar from becoming too strong.

In conclusion, the Indian rupee is benefiting from strong foreign investment and falling oil prices, while geopolitical factors remain a potential source of volatility. As long as these trends continue, the rupee could maintain its strength in the coming weeks.