Rupee Closes Stronger Against US Dollar After Weak Start

The Indian rupee closed 15 paise stronger at 85.27 against the US dollar on Thursday, compared to its previous close of 85.42 a dollar on Wednesday, according to Bloomberg.

The rupee opened lower against the US dollar on Thursday marking second consecutive day of weak start.

On Wednesday, the currency had opened lower to start the day 18 paise weaker at 85.60 against the US dollar, following its previous close at 85.42 a dollar. As a result, at market open on Thursday the domestic currency weakened by nearly 40 paise over two days.

Market gains continued for a second day in the US, driven by mixed signals from the Trump administration. Investors speculated that Trump might attempt to ease tensions due to the negative impact on equities, bonds, and global confidence in the US economy. The treasury secretary mentioned that the US would not target specific exchange rates in discussions with Japan, influencing the yen's value, said Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP.

Early on Thursday, Brent oil prices rose after a nearly 2% drop in the previous session, as investors weighing a potential OPEC+ output increase against conflicting tariff signals from the White House and ongoing Iran-US talks.

The Indian rupee, which had fallen due to the rise in the dollar index and recent Kashmir attack, was expected to trade within a range of 85.25 to 85.75. Exporters were likely to hedge currency receivables, while importers have already secured near-term positions, Bhansali noted.