The image used only for the purposes of representation. File | Photo Credit: Reuters
The rupee crossed its initial loss and settled for the day at 85.41 (provisional) against the US dollar on Friday (May 9, 2025), as the possible intervention by the Reserve Bank of India helped to include additional depreciation of the rupee.
Foreign currency (foreign exchange) traders said that the rupee opened on a weak note when hostility between India and Pakistan increased, however, the RBI intervened to prevent major weakness.
Interbank went into foreign currency, the domestic unit opened at 85.88 and between the Intra-Day high of 85.32 and against Greenback between 85.88. The unit finished the session at 85.41 (provisional), registering a benefit of 17 money at its previous closing level.
On Thursday (May 8), the rupee saw a two-day-day-day-day-day-day-day-day-day-on-day decline against the US dollar on Thursday, which declined by geopolitical tension between India and Pakistan.
“Weakened open open on Friday amidst geopic tensions on the Indian rupee border. The increase in weak domestic markets and crude oil prices was also weighed at the rupee.
“However, the domestic currency was recovered in the latter half on the report of improvement in US dollar index along with the sale of dollars by the Reserve Bank of India.”
On the night of intervention of Wednesday (May 7) and Thursday (May 8), India neutralized the Pakistan Army’s efforts to hit military stations at Jammu, Pathankot, Udampur with military stations and missiles and drones.
The Indian Army said on Friday (May 9) that the armed forces of Pakistan started several attacks using drones and other sages along the entire western border on the night of 8-9 May intervention,
Pakistani troops also resorted to “many ceasefire violations” along the line of control in Jammu and Kashmir, the Indian Army said in the morning post on X.
Meanwhile, the dollar index, which detects the strength of greenback against a basket of six currencies, was trading less than 0.26% at 100.38.
Global Oil Benchmark Brent crude, futures increased to 1.80% to $ 63.97 per barrel.
“We hope that the rupee will trade with a negative bias as geopolitical stress between India and Pakistan can continue weighing the domestic unit. Taking advantage of the rising crude oil prices and risk in domestic markets can put pressure on the rupee.
“However, the FII flow can support the rupee at the lower levels. Any de-size of stress in the weekend can also support the rupee on low levels,” Mr. Chaudhary said.
In the domestic equity market, the 30-cheer BSE Sensex declined by 880.34 points or 1.10%, closed at 79,454.47, while the Nifty fell 265.80 points or 1.10% to 24,008.00.
According to exchange data, foreign institutional investors (FII) bought a price of 2,007.96 crore on a pure basis on Thursday (May 8).
Published – May 09, 2025 05:03 PM IST