INR Gains Slightly: Rupee Rises 6 Paise to Close at 85.67 vs USD

The Indian rupee recorded a modest gain on Monday, rising 6 paise to settle at 85.67 against the U.S. dollar. The uptick comes amid mixed global cues, relatively stable crude oil prices, and mild demand for the rupee in the forex market.

Key Highlights

1. Rupee Closes at 85.67

The local currency opened at 85.72 and touched an intraday high of 85.65 before closing at 85.67, marking a 6-paise appreciation from the previous close of 85.73.

2. Dollar Weakness Offers Support

The U.S. dollar index showed minor weakness, trading below the 105 mark. This gave the rupee a slight edge in the currency market as global investors weighed recent U.S. economic data and upcoming Fed policy signals.

3. Crude Oil Prices Remain Steady

Stable international crude prices helped reduce concerns about India’s trade deficit and inflationary pressures, contributing to the rupee’s relative strength. Brent crude hovered around $84 per barrel.

4. Equity Market Sentiment Positive

The domestic equity markets ended flat to slightly positive, lending indirect support to the rupee through continued foreign investor interest and stable capital flows.

5. Import-Export Outlook Balanced

Currency traders suggest that month-end dollar demand from importers may limit further rupee gains in the short term. However, steady exports and remittance inflows are helping balance demand.

Expert View

Forex analysts believe the rupee will likely remain in the 85.50 to 86.00 range in the near term, barring any sharp movements in the dollar index or commodity prices. The market is also closely watching the Reserve Bank of India’s stance on currency management ahead of the next policy review.

Conclusion

The rupee’s 6-paise rise may seem small, but it reflects the underlying resilience of India’s currency amid global volatility. With international factors like U.S. inflation data and crude prices in focus, the INR’s path will depend on a mix of external pressures and domestic macroeconomic stability.