Rupee appreciates by 75 paise to 84.51 vs dollar, strongest intraday level of 2025

Rupee vs Dollar Rate Today: The rupee gained by as much as 75 paise, or 0.75 per cent, to 84.51 against the US dollar during Wednesday's session, marking its strongest level of the year so far. Analysts said that sustained institutional inflows and gains across other Asian currencies on the back of easing trade tensions are supporting the domestic currency. Weakness in the dollar overseas this week also continued to support the rupee, they added.  

As of Tuesday, foreign institutional investors (FIIs) were net buyers of Indian equities to the tune of Rs 2,684.5 crore, with net purchases continuing for 10 sessions in a row, according to provisional exchange data. Also, domestic institutional investors (DIIs) were net buyers to the tune of Rs 26,436.3 crore for the month, the data shows.

The dollar index was last seen trading 0.2 per cent higher on the day at 99.39, still about 9.8 per cent off its highest point of the week. The index measures the greenback against six peers other than the rupee. The gauge compares the American currency against the euro, the Japanese yen, the British pound, the Canadian dollar, the Swedish krona, and the Swiss franc. 

"The rupee has appreciated by over one per cent this month, supported by a combination of favorable global and domestic factors. A sharp 4.5 per cent decline in the US dollar index, signs of a weakening US economy, and sustained portfolio inflows of over Rs 37,000 crore into Indian markets over the past 10 sessions have contributed to the rupee's strength. Improved investor sentiment toward emerging markets, driven by optimism around a possible easing in US-China trade tensions, has encouraged capital inflows into India," Sugandha Sachdeva, Founder of SS WealthStreet, told Zeebiz.com. 

"This renewed risk appetite has reinforced the appreciation of the rupee. Today's sharp gain was primarily driven by optimism surrounding a potential trade deal between the US and India, which lifted market sentiment further. Additionally, the rupee broke a crucial technical level at 85, prompting exporters to hedge their forex exposure and sell US dollars, thereby accelerating the local currency's rise," she said. 

Some analysts also said that the markets turning more divish on the US rate outlook can continue to lend support to Asian currencies going forward. 

In afternoon deals in India, the yen was down 0.52 per cent against the US dollar, while the Hong Kong dollar was down 0.04 per cent, the Singaporean dollar down 0.15 per cent, the Taiwanese dollar down 0.70 per cent, the Chinese yuan down 0.1 per cent, and the Thai baht down 0.18 per cent. 

Meanwhile, Brent crude, a global benchmark for oil prices, was down 0.73 per cent at $62.82 per barrel.   

Rupee vs Dollar Forex Rate: The road ahead

"We expect the rupee to strengthen further toward the 84.10 level, provided it can decisively breach the 84.50 resistance. However, the currency’s trajectory will remain highly sensitive to upcoming economic data releases, including the first estimate of US Q1 GDP, the PCE Index, and the US jobs report," said Sachdeva. 

On Tuesday, the rupee ended marginally lower at a provisional 85.25 against the US currency.

The country's financial markets will remain shut on Thursday for Maharashtra Day. 

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