Indian rupees are weakened against the dollar between volatile equity markets and RBI policy discussions, while GDP growth is higher than expectations. File | Photo Credit: Reuters
The rupee on Tuesday (June 2, 2025) made 10 money to 85.49 against the US dollar in the initial trade, with a minor recovery in American currency against major rivals, high crude oil prices and outfits of foreign funds.
Forex traders said that unstable domestic equity market is also weighed on Indian currency in front of the Reserve Bank’s monetary policy announcements.
RBI’s Monetary Policy Committee (MPC) will start its next dual-masical policy on 4 June and the result is to be declared on 6 June.
In the interbank foreign currency, the domestic unit was weak open and in a narrow range, traded 10 money lower at 85.49 against Greenback in early deals.
On Monday (June 2, 2025), the rupee appreciated 16 money for settling at 85.39 against the dollar.
Meanwhile, the dollar index, which detects the strength of greenback against a basket of six currencies, was trading more than 0.23% at 98.86.
Global Oil Benchmark Brent crude, futures trading increased 0.51% to $ 64.96 per barrel.
In the domestic equity market, the 30-cheer BSE Sensx fell 36.42 points or 0.04% to 81,337.33, while the Nifty slipped from 43.25 points or from 0.17% to 24,673.35.
According to the exchange data, foreign institutional investors (FII) sold the price of 2,589.47 crores on a pure basis on Monday (June 2, 2025).
A monthly survey released on Monday (June 2, 2025) showed that India’s manufacturing growth fell at a three-month low in May, restricted by inflation pressure, soft demand and increased geopolitical conditions. The seasonally adjusted HSBC India Manufacturing Purchase Manager Index (PMI) fell from 58.2 in April to 57.6 in May, highlighting the weakest improvement in operating conditions from February.
The latest government data released on Friday (May 30, 2025) revealed that the Indian economy was expanded at a faster speed in the last quarter of the fiscal of 2024–25. The GDP growth rate of 7.4% in the January-March period of FY 25 reflected a strong cyclical rebound that helped in increasing private consumption and strong growth in manufacturing and manufacturing.
The government also managed to meet its fiscal deficit target of 4.8% of GDP for 2024–25, according to provisional data released by the controller of accounts on Friday (May 30, 2025).
Apart from this, the GDP of the country remained above the mark of 2 lakh crores for the second consecutive month, increased by 16.4% to more than ₹ 2.01 lakh crore in May. Goods and Services Tax (GST) collection touched a record high of ₹ 2.37 lakh crore in April.
Published – June 03, 2025 11:15 AM IST
