New Delhi: The Indian rupee concluded a choppy trading week on a subdued note, closing at ₹88.09 per U.S. dollar on Friday, reflecting a modest weekly gain of 0.2%. The local currency witnessed swings earlier in the week, briefly touching a two-week high of ₹87.72, before retreating near historic lows due to persistent global uncertainties.
The rupee’s movements were largely influenced by a strengthening U.S. dollar and rising Treasury yields. The dollar index climbed to 97.5, applying pressure across Asian currencies, including the rupee, despite a 25-basis-point interest rate cut by the Federal Reserve. Analysts noted that concerns over ongoing U.S. trade tariffs and foreign portfolio outflows continued to weigh on investor sentiment, contributing to the currency’s vulnerability.
Market participants expect the rupee to remain volatile within a range of ₹87.50–88.50 per dollar in the near term, with a slight downward bias likely to persist. The Reserve Bank of India (RBI) has actively intervened in the offshore non-deliverable forward (NDF) market to stabilize the rupee, aiming to maintain orderly market conditions amid uncertain global flows.
Equity markets, however, ended the week on a relatively positive note. The BSE Sensex and Nifty 50 rose approximately 0.8%, even as the rupee faced downward pressure on Friday. Bond yields edged higher, with India’s 10-year government bond yield climbing by 3 basis points, alongside a 6-basis-point rise in the U.S. 10-year Treasury yield to 4.12%, reflecting a cautious sentiment among investors balancing equity gains and currency risks.
Looking ahead, while the rupee faces short-term pressures, market watchers are keeping an eye on potential trade negotiations between India and the United States, which could positively influence foreign investment flows and provide some relief to the domestic currency. Analysts caution, however, that until clarity emerges on global economic cues, the rupee is likely to continue its turbulent journey.