Image used for representative purposes. File | Photo Credit: Reuters
The rupee on Tuesday (May 13, 2025) overwhelmed its initial advantage for more than 3 money against the American currency at 85.33 (provisional), as due to the rising hunger for the risky assets between reducing the trade tariff stress.
However, rising crude oil prices, a strong US dollar, and the emergence of booking of profit in domestic equity banned the rise of the domestic unit, the traders said.
In the interbank Forex, the domestic unit opened at 84.70 and the intra-day of 84.62 went between the high and the lower level of 85.48 against Greenback. The unit finished the session at 85.33 (provisional), registering a profit of 3 money at its previous closing level.
On Friday (May 9, 2025), the rupee crossed its initial loss and settled for the day for 22 money for the day at 22.36 against the US dollar.
The foreign exchange market was closed on Monday (May 12, 2025) due to Buddha Purnima.
The US and Chinese officials said on Monday (May 12, 2025) reached a deal to bring back their recent tariffs and called the 90-day Trus in their business war for more talks over resolving their business disputes.
“We hope that India and Pakistan will have a trade of money to trade with a positive bias between geopolitical stresses. Increased risk of risk in global markets amid reducing trade tariff stress between the US and China.”
India and Pakistan on Saturday (May 10, 2025) announced to reach an understanding to prevent all firing and military functions on land, air and sea with immediate effect.
At its first address to the nation after Operation Sindoor, Prime Minister Narendra Modi on Monday warned Pakistan strictly that India would not bow to nuclear blackmail and a clear message would be sent to the world: terror and business, terror and talks cannot go together.
PM Modi said, “Operation Sindor is India’s new policy against terrorism and justice. This is a new policy of India. It is normal. We have maintained our operations against Pakistan only, and the future will depend on their behavior.”
Mr. Chaudhary further said that the increase in global crude oil prices and the decline in domestic markets may gain weight on the rupee. Any foreign institutional investor (FII) outflow can also put pressure on the rupee. Traders may indicate CPI inflation data from USD/INR spot price, it is expected to trade within the range of 85 to 86.
The dollar index, which detects the strength of greenback against a basket of six currencies, was trading 0.20% less at 101.58.
Global oil benchmark, Brent crude, futures trade grows 0.42% to 65.23 per barrel. Experts said that in the last few sessions, Brent crude prices have risen up to US $ 65 per barrel, which can increase India’s trade deficit.
In the domestic equity market, the 30-cheer BSE Sensx declined by 1281.68 points or 1.55%, closed at 81,148.22, while the Nifty fell 346.35 points, or 1.39%, fell to 24,578.35.
According to exchange data, FIIS bought a price of 1,246.48 crores on Monday (May 12, 2025).
Published – May 13, 2025 04:50 pm IST