USD/INR: Rupee Rallies for Fourth Straight Session, Gains 19 Paise Against US Dollar

The Indian Rupee continued its upward momentum on April 17, 2025, strengthening for the fourth consecutive session. It opened 19 paise (0.22%) higher at ₹85.49 against the US Dollar, compared to the previous close of ₹85.68.

Over the past four trading days, the rupee has appreciated by nearly ₹1.2, significantly reducing its monthly decline to just 0.06%.

Dollar Weakness Supports Rupee, Global Currencies

The US Dollar Index fell sharply by 0.66% to 99.55—its lowest level since April 2022—providing a boost to emerging market currencies, including the Indian Rupee. The dip came amid heightened trade tensions between the US and China, as Washington imposed fresh tariffs of up to 245% in retaliation to Beijing’s latest countermeasures.

The Trump administration also initiated a probe into potential tariffs on critical minerals and called on China to begin dialogue to de-escalate the situation. The weakening dollar helped the rupee trade stronger, as global risk sentiment shifted in favour of emerging markets.

Foreign Institutional Inflows Boost Rupee Momentum

FIIs ended a nine-day selling streak on April 15 by investing ₹6,065.78 crore in Indian equities—the third-largest single-day purchase this year.

The trend continued on April 16 with an additional ₹3,936.4 crore in equity investments. This robust inflow of foreign capital has played a key role in reinforcing the rupee’s appreciation over the past week.

Oil Prices Stable

On the commodities front, crude oil prices rose for a second straight day amid U.S. actions to disrupt Iranian oil supply chains.

Brent crude increased by 1.17% to $66.62 per barrel, while WTI crude climbed 1.44% to $63.37. Moderating oil prices have helped keep inflation in check, further supporting the rupee.

Conclusion

The rupee’s rally reflects a favourable alignment of domestic strength, capital inflows, and global market trends. While geopolitical and economic risks persist, India’s strong macroeconomic fundamentals and its positioning as a preferred investment destination could continue to provide near-term support for the local currency.

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