Rupee Strengthens Amid Declining Oil Prices and Weaker Dollar, opens 8 paise higher at ₹85.44

The Indian rupee opened 8 paise higher at ₹85.44 against the US dollar on Monday, 19 May, 2025 buoyed by a retreat in global crude oil prices and a weakening dollar index. This marks the second consecutive session of gains for the domestic currency, following its previous close at ₹85.52 on Friday.

Market Dynamics and Currency Movements

The rupee's appreciation is attributed to a combination of factors, including a decline in crude oil prices and a softer dollar. The Brent Crude is trading at $65.17 with a decline of 0.37%. The WTI Crude is trading at $62.33 at a decline of 0.26%. The dollar index, which measures the greenback against a basket of six major currencies, was trading 0.29% lower at 100.80. This decline follows Moody's downgrade of the US government's credit rating from AAA to AA1, citing concerns over escalating debt levels.

Year-to-Date Performance

Despite the recent gains, the rupee has depreciated by approximately 0.22% in the current calendar year. Analysts suggest that while the immediate outlook appears stable, ongoing global economic developments and domestic factors will continue to influence the currency's trajectory.

Conclusion

The rupee's recent strengthening reflects a response to global market shifts, particularly the decline in oil prices and the weakening of the US dollar. Investors and market participants will closely monitor upcoming economic indicators and geopolitical developments to gauge the currency's future performance.

Disclaimer: This news is solely for educational purposes. The securities/investments quoted here are not recommendatory.

To read the RA disclaimer, please click here