Rupee Opens 12 paise Higher at ₹85.33, Amid Steady FII Inflows and Easing Crude Prices​

The Indian rupee commenced Monday's trading session on a stronger note, appreciating by 12 paise to open at ₹85.33 against the US dollar, compared to its previous close of ₹85.45. This appreciation is attributed to sustained foreign portfolio investment (FPI) inflows into equities and a decline in crude oil prices, providing support to the domestic currency despite recent geopolitical tensions.​

FPI Inflows Strengthens Rupee

Foreign investors have maintained a consistent buying streak in Indian equities, marking the eighth consecutive day of net purchases. On Friday alone, global funds acquired stocks worth ₹2,952.33 crore, bringing the total inflow over the past eight sessions to ₹32,500 crore. This persistent investment activity has contributed to the rupee's resilience, as FPIs continue to sell dollars on any uptick, reinforcing the currency's strength.​

Crude Oil Prices Provide Relief

Crude oil prices experienced a slight dip, with Brent crude trading at $67.10 per barrel and WTI crude at $63.28 per barrel as of 10:10 AM IST. The easing of oil prices offers relief to the Indian economy, which is heavily reliant on oil imports, thereby positively impacting the rupee's valuation.​

Geopolitical Tensions and Market Sentiment

The rupee's performance last week was influenced by escalating tensions between India and Pakistan, following a ceasefire violation across the Line of Control (LoC) by Pakistan after the Pahalgam terror attack. Despite these developments, the absence of major news over the weekend has provided the rupee with marginal relief at the start of the week.​

Outlook and Technical Levels

Analysts suggest that the dollar-rupee pair is expected to remain volatile in the near term. Strong domestic fundamentals, including rising forex reserves and healthy capital inflows, are likely to support the rupee. Technically, the dollar-rupee pair has strong support between ₹85.00 and ₹85.20 levels, with potential movement towards the ₹85.80–₹86.20 range.​

Global Factors and Dollar Index

The dollar index, which measures the value of the US dollar relative to a basket of foreign currencies, was up 0.19% at 99.66 as of 9:15 AM IST. Ongoing global trade tensions are weighing on the dollar index, keeping it anchored around the 99 level, and indirectly benefiting the rupee by curbing dollar strength.

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