Rupee Gains 6 Paise to 85.44 Against US Dollar Amid Weak Greenback, Easing Crude Prices

Mumbai, June 30, 2025 — In early trade on Monday, the Indian rupee strengthened by 6 paise to trade at 85.44 against the US dollar owing to a multitude of reasons – a softer American currency, declining crude oil prices, and improved global risk sentiment.

Dollar Weakness and Oil Price Dip Support Rupee

At the interbank foreign exchange market, the rupee opened at 85.48 and quickly rose to 85.44, marking a 6-paise appreciation from its previous close of 85.50 on Friday. The rupee had gained 22 paise in the previous session.

The US dollar index weakened to 97.25, falling 0.15% as safe-haven demand diminished following a ceasefire between Iran and Israel. The development has cooled tensions in the Middle East and alleviated pressure on global energy markets.

In tandem, Brent crude slipped by 0.18% to USD 67.65 per barrel, driven by expectations of increased OPEC+ supply in August and declining geopolitical risk premiums.

Traders See Short-Term Volatility Despite Gains

Forex analysts cautioned that recent geopolitical uncertainties—stemming from abrupt US foreign policy signals—could trigger risk-off moves in global markets. Notably, US President Donald Trump’s statements on halting trade talks with Canada and issuing threats toward Iran have injected fresh volatility into investor sentiment.

Despite the temporary relief in the oil and currency markets, analysts at CR Forex Advisors noted that the USDINR pair may find support in the 85.20–85.40 zone, potentially rebounding toward 86 levels in the short term.

Domestic Market and Forex Reserve Update

Meanwhile, Indian equity benchmarks slipped, with the Sensex falling 249.03 points to 83,809.87 and the Nifty declining 66.90 points to 25,570.90, reflecting cautious investor behaviour.

Foreign Institutional Investors (FIIs) remained net buyers on Friday, purchasing ₹1,397.02 crore worth of equities, according to exchange data.

On the reserves front, India’s forex reserves fell by USD 1.01 billion to USD 697.93 billion in the week ended June 20, as per Reserve Bank of India data. The reserves had previously risen by USD 2.29 billion to USD 698.95 billion, nearing the record high of USD 704.89 billion registered in September 2024.

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