Rupee Soars to 5-Month High with Best Single-Day Gain in 29 Months

Image Source: Reuters

The rupee gained 0.5% to 84.78 against the dollar on April 30, its strongest since late 2024 and the biggest one-day rise since late 2022, as solid foreign inflows and a softening US dollar supported it. The key reasons are:

Foreign investments: Over ₹25,000 crore of FII investment in equities, particularly financial and infrastructure ones.

Dollar sales: Exporters rushed to hedge receivables, with importers delaying purchases after having settled liabilities in March.

Technical breakout: The rupee penetrated the 200-day moving average (84.70–84.75), triggering stop-loss and short-covering.

Hopes of a US-India trade deal - with Donald Trump saying talks were "coming along great" - provided support. Traders, however, warned of risks emanating from geopolitics after the Kashmir militant attack.

Sources: Reuters, Business Standard, Indira Securities