Rupee Rallies: INR Opens Stronger at 84.64, Contrary to Geopolitical Uncertainties

The Indian rupee opened stronger by 0.2% at 84.64 per US dollar on Thursday, rising from its previous close of 84.8250 and demonstrating strength in spite of increased India-Pakistan border tensions and international economic uncertainties.

Key Highlights

The rupee's stronger opening is consistent with one-month non-deliverable forwards, which had estimated an opening in the range of 84.72–84.74, as cautious optimism among traders meant that any instant escalation of tensions in the region seemed remote.
Wednesday witnessed the rupee falling its biggest single-day in close to a month following cross-border missile attacks, but Thursday saw the recovery held up by foreign investors continuing to be net purchasers of Indian shares, pointing towards confidence in the stability of India's market.
The US Federal Reserve's move to leave rates unchanged and a minor fall in the US dollar index have also assisted emerging market currencies such as the rupee in recouping lost ground.
Market experts opine that although the rupee's short-term outlook is positive, any new deterioration in India-Pakistan tensions can again put pressure on the currency.
The rupee, as per SBI and other market projections, will trade between the 85–87 range during the rest of 2025, driven by consistent capital inflows and a weaker dollar environment.
The overall stock market saw a flat opening, reflecting the cautionary attitude, but continued buoyancy in foreign institutional inflows is supporting the strength in the rupee.

The currency market in India remains vigilant, but today's opening indicates confidence and underlying economic stability.

References: Reuters, Business Standard, India Today