Strengthening Asian currencies, softening oil prices, and robust foreign portfolio investments have propelled the Indian rupee to a seven-month high, raising bullish hopes for the INR.
Mumbai, May 5, 2025 — The Indian rupee continued its upward trajectory on Monday, climbing to 84.18 per US dollar in intraday trade, registering a sharp gain of 39 paise from the previous session. This surge takes the currency closer to last Friday’s seven-month high of 83.77, fueled by foreign portfolio inflows, easing crude prices, and broad-based weakness in the greenback.
At the interbank forex market, the rupee opened at 84.45, dipped briefly to 84.47, before rebounding strongly through the session.
💹 5 Key Drivers Behind the Rupee Rally
1. Crude Oil Price Decline
- Brent crude fell over 3% to $59.24/barrel, while WTI dropped to $56.15/barrel.
- OPEC’s signal of increased supply has eased India’s import cost outlook, strengthening the INR.
2. Foreign Portfolio Investor (FPI) Inflows
- FPIs injected ₹4,223 crore into Indian equities in April, reversing a three-month outflow trend.
- On Friday alone, ₹2,769.81 crore worth of shares were bought by FPIs.
3. US Dollar Weakness
- The dollar index slipped to 99.76, down 0.26%, amid expectations of a Fed rate cut in June.
- A strong Taiwanese dollar further pressured the greenback, aiding Asian currencies.
4. Strong Domestic Macroeconomic Data
Also Read: India’s Forex Reserves Climb for Eighth Straight Week, Reach $688.13 Billion
- April GST collections hit a record ₹2.37 lakh crore, up 12.6% YoY.
- India’s forex reserves rose $1.98 billion to $688.13 billion, their 8th straight week of gains.
5. Indian Stock Market Rally
- Sensex and Nifty 50 have surged 7% over the past month on robust earnings, easing trade tensions, and positive global cues.
📈 Market Outlook: Rupee vs Dollar
- Analysts expect the USD/INR pair to remain volatile but range-bound in the near term.
- Support is seen at 84.00 – 83.80, with resistance around 84.80.
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INR vs USD, Indian Rupee, US Dollar, Forex Market, FPI Inflows, Crude Oil Prices, RBI Intervention, Stock Market Rally, Dollar Index, Indian Economy