Rupee Rallies: INR Opens Stronger at 85.06, Riding High on Global Optimism and Easing Tensions

The Indian rupee opened with a robust 0.3% gain at 85.06 per US dollar on May 14, 2025, marking a notable recovery from its previous close of 85.33. This early surge reflects a wave of positive sentiment sweeping through the currency and equity markets, driven by both international developments and domestic resilience.

 

Key Highlights:

 

The rupee’s firmer opening follows a series of global factors: a landmark US-China trade pact slashing tariffs, and a ceasefire agreement between India and Pakistan, both of which have significantly improved investor risk appetite and regional stability.

 

Indian equity markets mirrored this optimism, with benchmark indices posting their best performance in four years, buoyed by strong foreign institutional investor (FII) inflows and a rally in global equities.

 

The US dollar index, while slightly higher, remains subdued due to ongoing recession concerns and a dip in US bond yields, offering emerging market currencies like the rupee room to appreciate.

 

Analysts note that the rupee’s resilience is further supported by healthy government finances, a narrowing current account deficit, and moderating oil prices, even as the currency navigates volatility from global events and FPI outflows.

 

The trading range for the day is expected between 84.50 and 85.25, with market watchers closely monitoring geopolitical signals and oil price movements for further cues.

 

Despite recent depreciation pressures, the rupee has remained relatively stable compared to global peers, thanks to robust macroeconomic fundamentals and prudent RBI interventions.

 

Sources: CNBC TV18, Economic Times, IANS Live