Image Source: News18
The Indian rupee started the day with a stunning 0.9% rise to 84.62 against the U.S. dollar on May 13, 2025, one of its highest single-day gains this year, and surpassing its last close of 85.37. This leap is at its highest point since the beginning of 2025, reflecting renewed investor optimism and solid economic momentum.
Key Highlights:
New High for 2025: The rupee's opening of 84.62 is a stunning appreciation, following its rise over the past few weeks and establishing a fresh 2025 high.
Foreign Inflows Power Rally: Continuous buying by foreign institutional investors (FIIs)-with more than ₹25,000 crore having come into Indian equities in April-has been a major catalyst, particularly in finance and infra space. This rupee demand has propelled the currency to a record high.
Macro Strength: India's industrial and manufacturing output registered a strong 3% year-on-year growth in March, which has added to the strength of the rupee. The spurt in the equity markets has also helped sentiment.
Global Factors at Play: The U.S. Dollar Index fell 4.5% this month, as hopes of a possible Federal Reserve rate cut rendered emerging market currencies such as the rupee more appealing. Relaxation in global trade tensions and favorable diplomatic developments have also helped propel the rupee.
Analysts' Forecast: Experts say the rupee can hold on to its strength, with some foreseeing a steady progression toward 84 per dollar by end of the year, subject to some large geopolitical upset or RBI intervention.
The strong performance of the rupee is a reflection of India's economic strength and increased attractiveness to overseas investors.
Sources: Economic Times, BusinessWorld, Indira Securities
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