Rupee Recovers 31 Paise to Close at 85.31 Against US Dollar Amid Softer Greenback, Lower Crude Prices

July 3, 2025 – On Thursday, the Indian rupee made a strong comeback, gaining 31 paise to close at 85.31 (provisional) against the US dollar. A drop in the price of crude oil around the world, an easing of US Treasury yields, and a reduction in the value of the US dollar after the release of negative US job data all contributed to the spike.

Key Drivers Behind the Rupee’s Strength

The local currency opened at 85.69 at the interbank foreign exchange and moved within a tight range of 85.19 to 85.70 during the session. It ultimately settled at 85.31, marking a significant recovery from Wednesday’s close of 85.62.

The turnaround came as the US dollar weakened after the release of lower-than-expected ADP Non-Farm Employment data. A dip in US Treasury yields and falling Brent crude prices further bolstered investor sentiment toward the rupee.

Brent Crude and Dollar Index Movements

Brent crude futures slipped 1.01% to USD 68.41 per barrel, providing relief for the oil-importing Indian economy. Meanwhile, the US Dollar Index rose marginally by 0.05% to 96.82, but this was not enough to stall the rupee’s advance.

Domestic Equity Market and FII Activity

Despite gains in the rupee, domestic equity markets ended in the red. The BSE Sensex dropped 170.22 points to 83,239.47, while the NSE Nifty declined 48.10 points to 25,405.30.

Foreign institutional investors (FIIs) continued their selling streak, offloading equities worth Rs 1,561.62 crore on a net basis on Wednesday, as per exchange data.

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