Rupee Closes Weaker Against US Dollar

The India rupee closed weaker against the US dollar on Thursday, despite recovering from intraday losses. The domestic unit settled 7 paise weaker at 85.78 against greenback. 

In comparison, the Indian unit settled five paise higher at 85.71 against the American counterpart on Wednesday, according to Bloomberg data.

The Indian unit, earlier on Thursday, opened 20 paise lower at 85.91 against dollar, according to data on Bloomberg. It touched an intraday low of 85.92.

The dollar index retreated from three-week high it touched on Wednesday. Market participants await the release of US gross domestic product data, unemployment claims, and speeches from several US Federal Reserve officials.

"As the market digests the latest trade developments, attention now shifts to the upcoming US GDP data. The Conference Board forecasts that the US GDP growth will slow to 2.3% in 2025 and further to 1.8% in 2026," said Amit Pabari, director, CR Forex Advisors.

The index was trading 0.05% down at 104.50 as of 3:24 p.m, according to data on Bloomberg.

Crude oil future prices also gave up gains, which supported the Indian unit. The May future contract of Brent crude was trading 0.39% down at $73.50 a barrel as of 3:24 p.m., according to data on Bloomberg.

"Rupee should be range bound unless the decision on the US delegation negotiating the tariffs comes out," said Anil Kumar Bhansali, head, treasury and executive director, Finrex Treasury Advisors LLP.