Indian rupee strengthened slightly against the US dollar in early trade on Thursday, rising by 7 paise to 90.40 at the interbank foreign exchange market.
The rupee opened the session at 90.52 against the dollar and gradually moved higher as the morning progressed. Forex dealers said the modest rise was supported by a slightly positive tone in domestic equity markets and easing pressure from the US currency in early Asian trade.
However, market participants remained cautious, limiting sharp gains in the rupee. Traders said investors are closely watching developments related to the India–US trade talks, with optimism tempered by the absence of detailed announcements or formal agreements so far. While statements from both sides have raised hopes of progress, markets are waiting for concrete clarity before taking stronger positions.
The rupee’s movement is also being influenced by expectations around the Reserve Bank of India’s monetary policy stance. Any signals from the central bank on interest rates, inflation outlook, or intervention in the foreign exchange market are likely to play a key role in determining the currency’s near-term direction.
Global factors continue to weigh on sentiment. The US dollar index, which measures the greenback’s strength against a basket of major currencies, remained firm, while crude oil prices stayed elevated. Higher oil prices are a concern for India, as the country depends heavily on imports to meet its energy needs. Rising crude prices tend to increase the country’s import bill and can put pressure on the rupee.
Forex experts said that while the rupee’s early gain is a positive sign, volatility is expected to continue in the coming days due to global economic uncertainty, geopolitical developments, and shifting expectations around interest rates in major economies.
Overall, the rupee’s rise to 90.40 reflects cautious optimism in the market, supported by domestic factors but restrained by global risks.
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