Rupee Rebounds: Closes At 87.82 Against Dollar With 0.3% Gain

Rupee gains on supportive macro cues

The Indian rupee posted a notable recovery on Thursday, ending 0.3% higher at 87.82 against the U.S. dollar. This marks its strongest single-day gain since June 2024, driven by a combination of foreign fund inflows, easing global crude oil prices, and a dip in the dollar index.

Traders cited improved risk appetite and expectations of stable monetary policy as contributing factors to the rupee’s strength. The Reserve Bank of India’s recent commentary on maintaining currency stability also helped calm market nerves.

Dollar index and crude oil trends support rally

The U.S. dollar index slipped below 105, while Brent crude prices eased to $87.10 per barrel, reducing India’s import bill and supporting the rupee. With global investors turning cautious ahead of key U.S. economic data, emerging market currencies like the rupee saw renewed buying interest.

Key highlights from the trading session

- Indian rupee closed at 87.82 per dollar, up 0.3% from 88.0750  
- Strongest one-day gain since June 2024  
- Supported by FII inflows and softer crude oil prices  
- Dollar index weakened, aiding emerging market currencies  
- RBI’s stance on currency stability boosted sentiment  
- Traders expect range-bound movement ahead of U.S. data releases

Outlook for currency markets

Analysts expect the rupee to trade in a narrow band between 87.50 and 88.20 in the near term, with volatility tied to global macro indicators and geopolitical developments. The festive season may also bring higher remittance inflows, offering additional support to the currency.

Sources: Reuters, Bloomberg, Business Standard, Moneycontrol