Rupee Rises 26 Paise to 85.54 Against U.S. Dollar in Early Trading

Speedy Summary

• The Indian rupee appreciated by 26 paise to trade at 85.54 against the U.S. dollar on April 16, 2025.
• Factors influencing the rupee’s strength include heavy foreign capital inflow, a weaker U.S. dollar, and lower global crude oil prices.
• The dollar index declined by 0.47% to 99.49, a level last seen in march 2022.
• Brent crude prices fell to $64.44 per barrel, it’s lowest since April 2021.
• On tuesday (april 15), Foreign Institutional Investors (FIIs) purchased ₹6,065.78 crore in net equities.
• Wholesale inflation fell to a six-month low of 2.05% in March; retail inflation dropped to nearly a six-year low of 3.34%.
• India’s exports increased marginally by 0.7% in March after four months of decline; total exports reached an all-time high of $820 billion for FY24.

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Indian Opinion Analysis

The rupee’s gratitude signals improving economic stability driven by favorable external factors such as declining crude oil prices and a weakening U.S dollar alongside robust domestic macroeconomic indicators like easing inflation and record-high export levels for FY24 ($820 billion). This habitat could bolster investor confidence while tempering import costs due to the stronger rupee.

However,challenges persist as equity markets registered slight declines despite recent FIIs activity indicating caution amid global uncertainties reflected in modest export growth (+0.7%). Policy focus should align towards maintaining these positive trends while mitigating volatility risks from external headwinds impacting commodity-linked imports or trade balance adjustments.