Rupee Strengthens Amidst Global Cues and Domestic Stability, Appreciates 12 paise to ₹85.42

Early Gains Reflect Positive Sentiment

In early trade on May 16, 2025, the Indian rupee appreciated by 12 paise, opening at ₹85.42 against the US dollar. This uptick follows a series of positive global cues and domestic economic indicators that have bolstered investor confidence.

Global Factors Supporting the Rupee

The rupee's gain can be attributed to a combination of factors, including a softer dollar index and easing crude oil prices. The dollar index, which measures the greenback against a basket of six major currencies, has shown signs of weakening, providing relief to emerging market currencies. Additionally, Brent crude prices have moderated, reducing the import bill for oil-dependent economies like India. The Brent Crude is trading at $64.97, with an increase of 0.68%.

Domestic Economic Indicators Remain Robust

On the domestic front, India's macroeconomic indicators continue to exhibit resilience. Recent data suggests steady GDP growth, controlled inflation rates, and a manageable current account deficit. These factors contribute to a stable economic environment, further supporting the rupee's strength.

Market Outlook

Analysts suggest that if the current global and domestic trends persist, the rupee may continue to trade within a stable range. However, they also caution that any sudden geopolitical developments or unexpected economic data releases could introduce volatility.

In summary, the rupee's appreciation to ₹85.42 against the US dollar reflects a confluence of favourable global trends and strong domestic fundamentals. Investors and market participants will closely monitor upcoming economic indicators and global events to gauge the currency's future trajectory.

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