Rupee Rockets to 2025 High: INR Surges Past 84.95 Against the Dollar

Image Source: Groww

The Indian rupee reached its year-to-date high, crossing the 84.95 level against the US dollar and reaching 84.96 in early April 2025 trading. This is the rupee's highest level since December 2024, driven by a steep global sell-off of the US dollar and strong foreign inflows into Indian markets.

Key Highlights:

Rupee Hits Year's High: The INR rose to 84.96/USD on April 4, 2025, advancing 34 paise from the last close and its best in months.
Dollar Index Plummeting: The US dollar index plunged the biggest one-day decline in more than two years, plummeting close to 2% following aggressive fresh US tariffs against more than 60 nations, including India, fanning global inflation and recession fears.
Market Drivers: The rupee rally was aided by consistent dollar selling by foreign banks, robust corporate repatriations in advance of India's financial year-end, and consistent foreign inflows.
Relief in Crude Oil: A decline in international crude prices to $69.55 a barrel further supported the rupee, relieving fears about India's import bill.
RBI’s Role: The Reserve Bank of India’s $10 billion forex swap auction saw bids more than double the offer size, signaling strong market confidence and adding to the rupee’s momentum.
Regional Outperformance: In March, the rupee was the best-performing Asian currency, erasing almost all of its 2025 losses and outperforming regional peers.
Volatility Ahead: Experts warn that global trade tensions and US monetary policy will continue to propel volatility in the USD/INR pair in the next few weeks.