Rupee rises 17 paise to close at 85.41 against U.S. dollar-OxBig News Network

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The rupee pared its initial losses and settled for the day higher by 17 paise at 85.41 (provisional) against the U.S. dollar on Friday (May 9, 2025), as likely intervention by the Reserve Bank of India helped contain excess depreciation of the rupee.

Foreign Exchange (Forex) traders said the rupee opened on a weak note on the escalation of hostility between India and Pakistan, however, RBI intervened to prevent major weakness.

At the interbank foreign exchange, the domestic unit opened at 85.88 and moved between the intra-day high of 85.32 and the low of 85.88 against the greenback. The unit ended the session at 85.41 (provisional), registering a gain of 17 paise over its previous closing level.

On Thursday (May 8), the rupee saw its steepest single-day fall in more than two-and-a-half years and settled 81 paise lower at 85.58 against the U.S. dollar on Thursday, weighed down by heightened geopolitical tensions between India and Pakistan.

“Indian rupee opened weak on Friday amid flaring up of geopolitical tensions across the border. Weak domestic markets and a rise in crude oil prices also weighed on the rupee.

“However, the domestic currency recovered in the latter half of the day on reports of selling of dollars by the Reserve Bank of India as well as a correction in the U.S. dollar index,” said Anuj Choudhary – Research Analyst at Mirae Asset Sharekhan.

On the intervening night of Wednesday (May 7) and Thursday (May 8), India neutralised the Pakistan military’s attempt to hit military stations in Jammu, Pathankot, Udhampur and some other locations with missiles and drones.

Pakistan’s armed forces launched multiple attacks using drones and other munitions along the entire western border on the intervening night of May 8-9, which were “effectively repulsed”, the Indian Army said on Friday (May 9).

Pakistani troops also resorted to “numerous ceasefire violations” along the Line of Control in Jammu and Kashmir, the Indian Army said in an early morning post on X.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading lower by 0.26% at 100.38.

Brent crude, the global oil benchmark, rose 1.80% to $63.97 per barrel in futures trade.

“We expect the rupee to trade with a negative bias as the geopolitical tensions between India and Pakistan may continue to weigh on the domestic unit. Rising crude oil prices and risk aversion in the domestic markets may further pressurise the rupee.

“However, FII inflows may support the rupee at lower levels. Any de-escalation of tensions over the weekend may also support the rupee at lower levels,” Mr. Choudhary added.

In the domestic equity market, the 30-share BSE Sensex declined 880.34 points, or 1.10%, to close at 79,454.47, while the Nifty fell 265.80 points or 1.10% to settle at 24,008.00.

Foreign institutional investors (FIIs) bought equities worth ₹2,007.96 crore on a net basis on Thursday (May 8), according to exchange data.