By The Sampadak Express
The Indian rupee appreciated by 38 paise to settle at 85.03 against the U.S. dollar on Monday, buoyed by sustained foreign fund inflows, easing global crude oil prices, and a strong rally in domestic equities.
At the interbank foreign exchange market, the local unit opened at 85.29 and swung between a high of 84.96 and a low of 85.42 during intraday trade. It ultimately closed at 85.03, marking a solid rebound from Friday’s closing of 85.41, when the rupee had slipped 8 paise.
Forex traders attributed the positive momentum to India’s improving macroeconomic fundamentals. Rising foreign exchange reserves continue to strengthen investor sentiment, offering a buffer against external shocks and enhancing the country’s import cover.
Analysts noted that while the near-term outlook for the rupee remains positive, any geopolitical tensions—particularly between India and Pakistan—could trigger risk aversion, leading to capital outflows and renewed pressure on the currency.“
The Indian rupee struck a confident pose at the start of the week, emerging as the top performer among its Asian peers,” said Dilip Parmar, Research Analyst at HDFC Securities. “Recovery in domestic equities, foreign investor interest, and a steady geopolitical backdrop all worked in its favour.”
On the global front, the U.S. dollar index was trading 0.13% higher at 99.60, indicating slight strength against a basket of major currencies. Meanwhile, Brent crude futures were down 0.46% at USD 66.56 per barrel, providing relief to oil-importing countries like India.
India’s foreign exchange reserves jumped by USD 8.31 billion to USD 686.145 billion for the week ended April 18, according to the Reserve Bank of India. This marks the seventh straight week of gains, bringing the reserves closer to the all-time high of USD 704.885 billion recorded in September 2024.
Domestic equity markets also witnessed robust gains. The benchmark BSE Sensex surged 1,005.84 points (1.27%) to close at 80,218.37, while the NSE Nifty climbed 289.15 points (1.20%) to 24,328.50.
Foreign institutional investors remained net buyers in the equity market, pumping in ₹2,952.33 crore on Friday, as per exchange data.
Looking ahead, forex analysts expect the USD-INR pair to find immediate support near 84.90 and face resistance around 85.70.
