Rupee Rises 6 Paise to Settle at 85.51 Against US Dollar
The Indian rupee appreciated by 6 paise on June 11, 2025, closing at 85.51 against the US dollar in the interbank foreign exchange market. This upward movement was driven by improved risk sentiment, dollar inflows, and supportive cues from global markets.
Key Drivers Behind the Rupee's Gain
1. Foreign Bank Dollar Sales
Sustained dollar selling by foreign banks contributed to strengthening the rupee. These sales are likely linked to inflows from foreign institutional investors.
2. Positive Global Sentiment
Currency markets remained steady after positive developments in US-China trade talks. A potential easing of restrictions and progress in economic agreements helped reduce global uncertainty.
3. Domestic Economic Indicators
Supportive domestic data, including a better-than-expected services PMI and a stable bond market, added to the rupee’s resilience.
4. Waiting on US CPI Data
Investors remain cautious ahead of the upcoming US Consumer Price Index (CPI) data, which could influence the Federal Reserve’s next rate decision. A weaker-than-expected inflation reading may put pressure on the dollar globally.
Market Reaction
The rupee opened at 85.57 and moved in a narrow range during the session before closing at 85.51.
Equity markets remained positive, aiding investor sentiment and supporting the local currency.
Crude oil prices remained relatively stable, offering relief to India’s trade balance and import-related currency outflows.
Forex Market Outlook
Market participants expect the rupee to trade within a narrow band in the near term, with key support levels seen at 85.70 and resistance at 85.30. The rupee’s trajectory will remain influenced by global macroeconomic data, US Fed commentary, and crude oil price movement.
Frequently Asked Questions (FAQs)
1. Why did the rupee appreciate against the US dollar?
The rupee appreciated due to dollar sales by foreign banks, steady equity markets, and improved global trade sentiment.
2. What was the closing value of the rupee on June 11, 2025?
The Indian rupee closed at 85.51 against the US dollar, gaining 6 paise from the previous session.
3. How do foreign inflows affect the rupee?
Foreign investments increase the demand for the Indian rupee, which can lead to currency appreciation.
4. What role does US inflation data play in rupee-dollar movement?
US inflation data influences expectations around interest rates set by the Federal Reserve. This affects the strength of the dollar and, in turn, impacts the rupee’s value.
5. What is the short-term outlook for the Indian rupee?
The rupee is likely to trade in a stable range, depending on global risk sentiment, oil prices, and central bank signals.
Published on: June 11, 2025
Uploaded by: PAVAN
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