Market Performance
The rupee opened at 82.85 and touched an intraday high of 82.42 before settling at 82.50. Key trading metrics for the day:
- Opening Rate: 82.85
- High: 82.42
- Low: 82.92
- Close: 82.50
- Net Change: +45 paise
Driving Factors
Strong FII buying in equity markets provided significant support to the rupee. FIIs purchased equities worth Rs. 4,500 crore in today’s session, marking the fifth consecutive day of net inflows.
Dollar Weakness
The Dollar Index (DXY) fell to 102.5, its lowest level in three months, as markets priced in potential Federal Reserve rate cuts in 2026. This global dollar weakness boosted emerging market currencies including the rupee.
RBI Intervention
Market participants noted that the central bank was present on both sides of the market, ensuring orderly trading conditions. The RBI’s forex reserves stood at USD 678 billion as of the previous week.
Forward Premiums
One-month forward premiums eased to 12-15 paise as spot rupee strength reduced carry trade attractiveness. Three-month premiums traded at 35-40 paise.
Expert Views
Currency strategists expect the rupee to trade in the 82.00-83.50 range in the near term, with upside limited by persistent trade deficit concerns and potential global risk-off events.
Outlook
The rupee’s trajectory will depend on upcoming US economic data, Fed commentary, and domestic macroeconomic releases including trade balance and inflation figures.
