Rupee Edges Higher: INR Opens Stronger Against Dollar Amid Global Cues

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The Indian rupee opened Thursday’s session with a modest gain, appreciating 0.05% to 85.5950 per US dollar, compared to its previous close of 85.6375. This marks a subtle but positive move for the currency, reflecting a blend of global and domestic influences shaping the forex landscape.

Key Highlights:

Opening Strength: The rupee’s opening at 85.5950 marks a slight improvement, supported by a softer US dollar and positive sentiment in Asian markets.
Global Dollar Movement: The US dollar has been under pressure due to renewed fiscal concerns in the United States, prompting investors to diversify into emerging market currencies like the rupee. The 1-month non-deliverable forward market indicated an opening range between 85.55 and 85.58, in line with the spot market’s performance.
RBI Policy and Inflation: Recent data showing India’s consumer inflation falling to a near six-year low has fueled expectations that the Reserve Bank of India will extend its rate-cutting cycle. The RBI’s previous liquidity injections and dovish stance have also contributed to the rupee’s resilience.
Trade and Energy Flows: Optimism over stable US-China trade flows has encouraged foreign inflows, while a rebound in global energy prices continues to be a headwind for the rupee.
Historical Context: The rupee remains well below its all-time low of 88.10, reached in February 2025, and has appreciated about 2.7% year-on-year, reflecting improved macroeconomic fundamentals.