The rupee recorded its best one -day lead in about two and a half years amid the softening of the dollar due to the trade policy of US President Donald Trump and the absence of the central bank in the foreign exchange market and it closed at a five -month high. The local currency closed at $ 84.49 per dollar today against $ 85.25 per dollar on Tuesday. This is the biggest one day growth in this calendar year. Local currency increased by 0.9 per cent, which is the largest figure since 11 November 2022.
The Indian currency made a significant comeback with an increase of 2 per cent in March and 1.16 per cent in April after reaching its all -time low of 87.95 per dollar on February 10, 2025. In 2025, it has increased by 1.33 per cent so far.
Dilip Parmar, senior analyst at HDFC Securities, said the biggest one -day lead in the Indian rupee after November 2022. The credit for this bounce can be given at the end of the month and technical selling in US dollars before the holidays. Despite the existing geopolitical tensions, the clear absence of the Reserve Bank of India from the market and the strengthening of other Asian currencies reduced the vigilance of the traders to some extent, which resorted to the rupee.
In the near future, the dollar-dollar in the near future can get support around 84.10 and can face resistance around 85.50. The current trends are seen in the rupee and in favor of strength.
Local currency saw the fastest growth in 2025 due to sales of dollars of exporters, as well as the softening of dollars of exporters, as well as the softening of dollars of importers to protect the profit). Traders also hoped that India would be one of the earliest countries to have a trade agreement with the US as Trump is emphasizing positive trade talks between the two countries.
A foreign bank dealer said, although it is difficult to say whether these levels will remain intact or not, but it is a good time for RBI to buy dollars and increase its foreign exchange reserves. The possibilities for Asian currencies have increased considerably due to geopolitical compatibility, weakened US dollar and the hopes of the Federal Reserve adopting a soft trend.
Some Asian currencies, which perform better than the rupee in the year 2025, include South Korean Von, Philippines’ Peso, Thai Bhat and Malaysian Ringit etc. A trader of the brokerage firm said, there are many reasons for the rapid rupee. The first is FPI (foreign portfolio investor) date and investment in equity markets. Second, the market has started ignoring the fact that India is close to ending the trade agreement with the US. During the day, stop losses were triggered below the level of 84.95 and the last thing was to invest at the end of the month.
Dealers said that investment is expected to continue on Friday. On Friday, the risk of going below the two is expected to be within a radius of 84.25/85.00. Foreign currency and money markets will remain closed on Thursday on the occasion of Maharashtra Day. The bond yield remained largely stable on Wednesday and a 10 -year government bond was 6.35 per cent compared to 6.34 per cent on Tuesday. Dealers said that traders were cautious due to geopolitical tension between India and Pakistan. In April, the government bond yield has declined by 23 basis points in April due to the central bank’s cash raising, cutting the policy repo rate and liberalizing the monetary policy attitude.
First Published – April 30, 2025 | 10:38 pm IST
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