Rupee Ends The Week Lower As Dollar Firms Up

The Indian rupee closed 11 paise weaker at 86.52 against the US dollar on Friday, slipping from Thursday’s close of 86.41, as a combination of global and domestic pressures weighed on the currency.

The decline came amid a firming US dollar, rising Brent crude prices, and persistent foreign portfolio outflows, all of which have added to the rupee’s vulnerability in recent sessions.

Brent crude climbed to $69.53 per barrel in early Asian trade, supported by easing geopolitical tensions and new trade agreements. “Ongoing restrictions on Russian oil by the EU and temporary Russian export suspensions have tightened global supplies,” said Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP. He added, “The forecast is for a moderate price rise going into the next quarter with an expectation of $70.70 per barrel by September-end.”

Meanwhile, the US dollar index edged higher, buoyed by strong labour market data. “Jobless claims have fallen for the sixth straight week, reinforcing the strength of the US economy,” Bhansali noted.

The dollar also held firm against major currencies, following the European Central Bank’s decision to hold interest rates steady at 2%—its first pause after seven consecutive cuts since 2024. “This could signal a potential end to its easing cycle with inflation also reaching the target of 2%,” Bhansali said. He added that “unresolved EU-US trade negotiations and potential tariffs” were key reasons behind the ECB’s cautious stance.