The Indian rupee weakened by 10 paise to settle at ₹85.48 (provisional) against the US dollar on Thursday, weighed down by a strengthening dollar globally and a fresh uptick in international crude oil prices. Despite these pressures, a resilient domestic stock market and continued foreign fund inflows offered some support, preventing a steeper decline, according to forex market analysts.
At the interbank foreign exchange, the rupee opened at ₹85.56, touched an intra-day low of ₹85.62, and rebounded slightly to reach a day high of ₹85.40 before closing the session at ₹85.48 — down 10 paise from its previous close of ₹85.38 on Wednesday.
Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, noted that “a rising dollar index and climbing crude oil prices created headwinds for the rupee,” adding that month-end dollar demand and potential foreign institutional investor (FII) outflows could continue to exert pressure. The USD-INR spot is expected to remain volatile within the range of ₹85.15–₹85.80, he projected.
The US dollar index, which tracks the currency’s performance against six major global peers, edged higher by 0.11% to 99.89, supported by easing global trade anxieties following a US federal court’s block on a major reciprocal tariff directive. Meanwhile, Brent crude — the global oil benchmark — gained 1.25% to reach $65.71 per barrel, adding to the rupee’s woes.
On the domestic front, the BSE Sensex surged 320.70 points (0.39%) to close at 81,633.02, while the NSE Nifty advanced 81.15 points (0.33%) to finish at 24,833.60. Foreign investors remained bullish, with net equity purchases worth ₹4,662.92 crore recorded on Wednesday, as per exchange data.
The Reserve Bank of India (RBI), in its annual report released Thursday, reaffirmed that India is on track to retain its title as the world’s fastest-growing major economy in FY26.
However, industrial production remains a concern. Fresh data revealed India’s IIP (Index of Industrial Production) slowed to 2.7% growth in April 2025, largely due to subdued performance in the manufacturing, mining, and power sectors.
