## Indian Rupee Strengthens Against US Dollar
On Friday, the Indian rupee commenced trading 39 paise higher against the US dollar, reaching 84.09 per dollar. It gained as much as 0.85%, climbing to 83.78 against the greenback, marking the highest level in seven months.
The local currency had achieved its highest closing value since November 2024 on Wednesday, finishing at 84.49, as reported by Bloomberg data.
Abhishek Goenka, the founder and CEO of India Forex Asset Management, noted that the selling of dollars by foreign portfolio investors led the USDINR pair to break below the recent low of 84.95, triggering several stops. He also mentioned that the Reserve Bank of India does not appear to be purchasing dollars aggressively.
He further stated that volatility has returned under the new RBI policies. The intraday ranges that previously fluctuated between 5 to 10 paise have now expanded to 30 to 60 paise, suggesting that the new regime is more open to allowing the rupee to fluctuate freely.
## Market Overview
As of 9:10 a.m. on Friday, the US dollar has decreased by 0.25%, settling at 99.81. Meanwhile, Brent Crude has rebounded from a prolonged decline, rising by 0.49% to 62.62.
The increase in oil prices has helped mitigate a substantial weekly drop as market participants weigh potential trade discussions between the US and China, along with new sanctions risks on Iranian oil exports against a possible supply boost from OPEC+.
The expected trading range for the day is between 84.45 and 84.80, with sideways price action anticipated according to the CEO of IFA Global.
Bloomberg reported that the rupee has reached a five-month high, despite recent geopolitical tensions. The currency has outperformed most of its Asian counterparts, with optimism surrounding a potential trade agreement between India and the US, renewed foreign investment in domestic stocks this month, and a generally weaker dollar contributing to its strength.
