Representative image | Photo Credit: Reuters
The rupee appreciated 20 money at 87.43 (provisional) against the US dollar on Wednesday (August 13, 2025), as a weak greenback and a positive speed in domestic equity markets, inspired investors.
Forex traders stated that the rupee was supported by weakening crude oil prices and domestic inflation cooling, but uncertainties on the outflow of trade tariffs and foreign funds made a sharp reverse to the domestic unit.
Interbank was opened in foreign currency, the rupee opened at 87.63, and oscillating between 87.72 and the high level of 87.28 against the US currency.
The rupee finally settled at 87.43, more than 20 money than its previous close. On Tuesday (August 12, 2025), the rupee appreciated 12 money at 87.63 against the US dollar.
Dilip Parmar, a research analyst at HDFC Securities, said, “The rupee has experienced its biggest one -day praise since July 3, inspired by a decline in US dollar. The dollar weakened amidst expectations of a September interest rate cut from the Federal Reserve after a decline in US dollar.”
“Performing the performance of rupee forward was many domestic and regional factors, including profit in Indian equity and other Asian currencies, fall in crude oil prices and a decline in domestic consumer price index (CPI).”
Meanwhile, Brent crude prices fell 0.54% to $ 65.76 per barrel in futures trade.
The dollar index, which detects the strength of greenback against a basket of six currencies, fell 0.44% to 97.66.
“The rupee rose rapidly on cooling inflation and strength in the domestic markets. India’s CPI inflation cools down to 1.55% in July 2025.
According to the government data released on Tuesday (August 12, 2025), for the first time after January 2019, the retail inflation slowed down the 8 -year low in July, falling under the Comfort Zone of the Reserve Bank.
The government has tasked the Reserve Bank to ensure that the consumer price index-based retail inflation remains at 4% with a difference of 2% on both sides.
Mr. Chaudhary further said that the rupee was also supported due to slipping of crude oil prices.
“We hope that the rupee will trade with positive bias on risk emotions in the global market and a weak US dollar. Softness of inflation and fall in crude oil prices may support domestic currency.
“However, the ongoing trade tariff war between India and the US and the FII may be faster. Investors may be ahead of the meeting of US President Donald Trump and Russian President Vladimir Putin on Friday (August 15, 2025),” said Mr. Chaudhary.
In the domestic equity market, the 30-Shar Sensitive Index Sensex climbed at 304.32 points to settle at 80,539.91, while the Nifty increased by 131.95 and closed at 24,619.35.
According to the exchange data, foreign institutional investors launched the price of ₹ 3,398.80 crore on Tuesday (August 12, 2025).
Published – August 13, 2025 04:33 pm IST