Indian Rupee Records Biggest Single-Day Gain Since 2022, Closes at 85.2125 Against US Dollar

The Indian rupee posted its largest single-day gain since November 2022, strengthening by 0.92% to close at 85.2125 per US dollar. The sharp appreciation comes amid a combination of global and domestic factors, including a weaker dollar index, month-end adjustments, and strategic interventions by the Reserve Bank of India.  

 

Factors Driving the Rupee’s Surge  

- The US dollar index weakened by 0.29%, contributing to the rupee’s appreciation  

- Month-end adjustments and exporter dollar sales provided additional support to the currency  

- The Reserve Bank of India’s absence from the forex market allowed natural market forces to drive the rupee’s gains  

 

Market Reactions and Investor Sentiment  

- The rupee’s rally was accompanied by a decline in government bond yields, reflecting improved investor confidence  

- Analysts suggest that the currency may continue to trade within a broader range of 84.50 to 85.75 in the near term  

- The appreciation comes after the rupee hit an all-time low of 87.95 per dollar in February, marking a strong recovery  

 

Future Outlook  

- The Reserve Bank of India’s forex strategy will play a key role in determining the rupee’s trajectory in the coming months  

- Global trade negotiations and US monetary policy shifts may influence further currency movements  

- Investors will be closely monitoring upcoming economic indicators and policy decisions for further direction  

 

Sources: Business Standard, Economic Times, Bloomberg Reports, Moneycontrol