Rupee climbs to 90.33 on trade optimism, RBI policy in focus
Rupee climbs to 90.33 on trade optimism, RBI policy in focus
Rupee ends higher on India-US deal optimism, with RBI policy cues and crude prices playing watchdog.
The rupee appreciated 14 paise to close at 90.33 (provisional) against the U.S. dollar on Thursday, after opening at 90.52 and swinging in a tight band that saw an early high of 90.06 and a low of 90.53. The domestic unit finished the session with a gain, signaling cautious positivity amid global trade optimism.
Forex traders cited optimism around the India-U.S. trade deal as a key driver, but warned that the upside was capped by persistent corporate dollar demand and a weak domestic equity mood. Traders also pointed to an awaiting RBI policy decision as investors mobilized around Friday’s monetary policy cues. USD-INR is expected to trade in a range of 90 to 90.50 as markets await official clarity on terms of the deal.
Market watchers noted that no official documents had yet been released, and no final terms had been published by either side, prompting a practical shift from celebration to verification. The RBI’s Monetary Policy Committee, headed by Gov. Sanjay Malhotra, began deliberations on the next bi-monthly rate decision, adding another layer of near-term uncertainty.
Crude oil prices remained elevated and tensions between the U.S. and Iran were cited as headwinds, potentially pressuring the rupee at higher levels. In this context, investors were careful, balancing potential upside from a clearer trade framework against the need for more concrete policy and price signals.
Overall, the rupee’s path remains data-dependent: a clearer deal framework and an RBI policy signal could provide a firmer footing for continued strength, while domestic market softness and dollar strength may cap any sustained rally.
