Rupee Hits Multi-Month High vs US Dollar Amid Crude Price Crash, FPI Inflows

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.

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At the interbank forex market, the rupee opened at 84.45, dipped briefly to 84.47, before rebounding strongly through the session.

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💹 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.

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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

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• 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.

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📈 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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🔖 Tags:

INR vs USD, Indian Rupee, US Dollar, Forex Market, FPI Inflows, Crude Oil Prices, RBI Intervention, Stock Market Rally, Dollar Index, Indian Economy