Rupee Opens Stronger at 85.31/USD, Snapping Out of Previous Lows

The Indian rupee opened at 85.31 per US dollar on May 16, marking a notable appreciation from its previous close of 85.55. This uptick comes after a period of consistent weakness, where the rupee hovered near record lows against the greenback.

 

Key Market Insights:

 

Stronger Opening: The rupee’s 24-paise gain at the open signals renewed buying interest, possibly driven by improved foreign inflows or a pause in recent dollar strength.

 

Recent Trends: On May 15, the rupee closed at 85.55, with the USD/INR pair trading in the 85.36–85.73 range during the session. The previous days saw the rupee under pressure, with the pair climbing steadily from the 85.06–85.51 band earlier in the week.

 

Yearly Perspective: Compared to a year ago, the rupee has depreciated by about 2.4%, reflecting persistent global headwinds and domestic demand for the US dollar.

 

Market Context: The rupee’s bounce today could be attributed to a combination of factors, including possible RBI intervention, softer US dollar index, or easing crude oil prices. However, the broader trend remains cautious as the currency has been trading in a tight, depreciating range for several months.

 

Volatility Watch: Analysts will be watching if the rupee can sustain this recovery, as the underlying pressures from global rates, trade deficits, and capital flows remain in play.

 

The rupee’s stronger start injects optimism but the currency’s path will depend on both global cues and domestic policy actions in the coming sessions.

 

Sources: Pound Sterling LIVE, Yahoo Finance, YCharts