Rupee Holds Firm As Dollar Index, Crude Oil Prices Cool Amid FII Exodus

The Indian Rupee opened flat on Friday as a continued decline in the dollar index and crude oil prices offered relief amid persistent selloff by global funds.

The local unit opened flat at 87.11 against the US dollar, according to Bloomberg data. The domestic unit closed at 87.11 on Thursday.

The Dollar Index weakened, dropping to a four-month low of 103.76 on Friday. Further, crude oil prices have tumbled by 15% from their recent peak. However, despite these favourable conditions, the rupee only managed a slight appreciation of 50 paise to 87.00 per dollar, according to Amit Pabari, managing director of CR Forex Advisors.

The domestic indicators have shown resilience, he said. A rebound in services PMI and the Reserve Bank of India's fresh liquidity push. "Despite these positive factors, the rupee’s appreciation has remained subdued due to tight liquidity conditions in the banking system."

Once the liquidity barriers crumble, the rupee is expected to make a strong comeback, Pabari said. "However, for now, it remains trapped within the 86.80 to 87.30 range."

In 2025 so far, the overseas investors have net sold equities worth Rs 1.34 lakh crore, the NSDL data showed.

Crude oil prices are on track for the biggest weekly decline since October. The Brent crude was up 0.24% at $69.63 a barrel as of 9:23 a.m. IST, and the West Texas Intermediate was up 0.17% at $66.47.

Stocks in the Asia-Pacific region slipped on Friday as Wall Street tumbled overnight, shrugging off US President Donald Trump's relief on the tariffs front. In a major relief, Trump said he would exempt Mexico and Canada from new tariffs on any goods and services that fall under the North American trade agreement known as USMCA.