Rupee rises 39 paise to 84.18 against U.S. dollar in early trade-OxBig News Network

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The rupee gained 39 paise to ₹84.18 against the U.S. dollar in early trade on Monday (May 5, 2025), as continued foreign investor interest in Indian assets lent fundamental support to the local unit.

Foreign Exchange (Forex) traders said a sharp decline in crude oil prices and a positive trend in domestic equities enthused investors further.

Brent crude oil prices slumped nearly 4% in the morning Asian trade after OPEC+ signalled over the weekend that they will further increase production in the coming months.

At the interbank foreign exchange, the domestic unit opened at ₹84.45 and fell to an early low of ₹84.47 and a high of ₹84.18 against the greenback, registering a gain of 39 paise over its previous close.

On Friday (May 2), the rupee witnessed high volatility as it hit a seven-month high and rose past the 84 per dollar level but pared all gains to settle 3 paise lower at 84.57 against the greenback.

The Indian rupee witnessed heightened volatility last week, driven by shifting market positions, steady capital inflows, and evolving Reserve Bank actions in the forex space, CR Forex Advisors MD Amit Pabari said.

Meanwhile, the dollar index was struggling at $99.69 just below 100 level even as concerns about a U.S. recession ebbed a little after a solid March payrolls by lengthening the odds on a Fed Reserve rate cut in June.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading lower by 0.26% at 99.76.

Brent crude, the global oil benchmark, fell 3.59% to $59.09 per barrel in futures trade.

“The OPEC+ announced a second straight monthly output hike for June, adding 411,000 barrels per day to global supply. Coupled with a 1 per cent decline in crude prices — Brent settled at USD 61.245 — this could ease India’s oil import bill and support the rupee further,” Mr. Pabari added.

In the domestic equity market, the 30-share BSE Sensex advanced 330.55 points, or 0.41%, to 80,832.54, while the Nifty rose 115.75 points, or 0.48%, to 24,462.45.

Foreign institutional investors (FIIs) bought equities worth ₹2,769.81 crore on a net basis on Friday, according to exchange data.

Meanwhile, India’s forex reserves increased $1.983 billion to $688.129 billion during the week ended April 25, the RBI said on Friday (May 2).

This is the eighth consecutive week of a rise in the kitty, which had jumped 8.31 billion to $686.145 in the previous reporting week.