Rupee Falls 10 Paise to 85.48 Against Dollar Amid Strong USD, Rising Oil Prices

The Indian rupee declined by 10 paise on Thursday, closing at 85.48 against the US dollar, pressured by a robust dollar index and surging crude oil prices. Read more on Dynamite News

New Delhi: On Thursday, the Indian rupee fell 10 paise to close at 85.48 against the US dollar. This fall was due to two major global reasons: one is the strength of the dollar against other major global currencies, and the other is the sharp rise in crude oil prices.

However, the strength of the domestic stock market and the fund inflow from foreign investors prevented further decline in the rupee to some extent, reports Dynamite News correspondent.

How was the rupee's movement throughout the day?

The rupee opened at Rs 85.56 per dollar on Thursday in the interbank foreign exchange market. During trading, it went down to an intraday low of 85.62 but showed strength during the day and reached 85.40. Finally, it closed at 85.48, which was 10 paise less than the previous trading day. It is worth noting that on Wednesday the rupee closed at 85.38, which was a gain of two paise.

What is the opinion of analysts?

Anuj Chaudhary, Research Analyst at Mirae Asset Sharekhan, believes that the strengthening of the dollar index and the rise in oil prices in the international market were the major factors putting pressure on the rupee. He also said that the increase in demand for the dollar in the last days of the month and the possibility of withdrawal of investment by FIIs can also weaken the rupee.

According to him, the spot price of dollar-rupee may remain in the range of 85.15 to 85.80 in the coming time. During this time, the dollar index was seen trading 0.11 percent higher at 99.89. This index reflects the position of the US dollar against the six major currencies of the world.

What is the reason for the strength of the dollar?

The reason behind this strength in the dollar is a decision of the US Federal Court, in which the "reciprocal tariff" policy of former President Donald Trump was banned. This has raised the hope of reducing the uncertainty of global trade to some extent.

How much did crude oil prices rise?

Globally, Brent crude prices rose by 1.25 percent and reached $65.71 per barrel, increasing pressure on oil-importing countries like India.

Domestic stock market and economy situation

BSE Sensex closed at 81,633.02 with a gain of 320.70 points, and Nifty closed at 24,833.60 with a gain of 81.15 points. According to exchange data, foreign institutional investors (FIIs) bought shares worth Rs 4,662.92 crore on Wednesday.

At the same time, the annual report of the Reserve Bank of India said that India will remain the fastest-growing large economy in the world even in the financial year 2026. However, the growth rate of industrial production (IIP) fell to just 2.7 percent in April 2025 due to the weak performance of manufacturing, mining, and power sectors.