Indian Rupee Opens Stronger at 85.05/USD, Gains 0.2% Amid Steady Forex Flows

The Indian rupee opened 0.2% higher at 85.05 per US dollar on Monday, May 26, compared to its previous close of 85.2125. This uptick reflects a positive start for the currency, supported by stable foreign exchange inflows and a relatively calm global dollar environment.

 

Key Highlights:

 

Opening Rate: INR opened at 85.05/USD, marking a modest appreciation from the prior session’s close of 85.2125.

 

Current Trends: The rupee’s opening aligns closely with interbank and market rates, with today’s expected trading range forecast between 85.22 and 85.59 per US dollar. The average USD/INR rate for the day is projected near 85.19, indicating a narrow band of movement and limited volatility.

 

Recent Performance: Over the past week, the rupee has seen minor fluctuations but remained largely stable, with the USD/INR pair oscillating between 85.10 and 86.03. The currency’s resilience is attributed to robust capital inflows, a record RBI surplus transfer, and manageable trade deficits.

 

Market Sentiment: Forex dealers note that the rupee’s strength is underpinned by steady foreign investment and a favorable macroeconomic backdrop. However, traders remain cautious ahead of upcoming US economic data releases and potential central bank commentary, which could influence global dollar demand.

 

With the rupee holding firm and trading within a tight range, market participants are watching for cues from both domestic policy and global developments to gauge the next directional move.

 

Sources: BookMyForex, Wise, XE.com