Rupee Slips to 85.58 Against Dollar: Dollar Surge, Trade Tensions, and Oil Prices Weigh on INR

The Indian rupee opened down 0.2% at 85.5800 per US dollar on April 24, 2025, marking a fresh bout of weakness after closing at 85.4200 in the previous session. This marks the rupee’s steepest fall in two weeks, driven by a resurgent US dollar and renewed global uncertainty.

 

Key Highlights:

 

Dollar Index Rally: The US dollar index rebounded sharply, rising 1.5% after US President Donald Trump signaled no plans to remove Federal Reserve Chair Jerome Powell and expressed optimism about easing US-China trade tensions. This bolstered the greenback and pressured most Asian currencies, including the rupee.

 

Foreign Flows and Market Sentiment: Despite continued foreign portfolio investment inflows into Indian equities, the rupee struggled as traders closed long positions, wary of the dollar’s strength and global risk factors.

 

Geopolitical and Trade Concerns: The rupee’s decline was further exacerbated by lingering concerns over reciprocal tariffs and recent geopolitical tensions, including negative sentiment following attacks in Kashmir.

 

Oil Prices Add Pressure: Rising crude oil prices—Brent up 1.3%—added to the rupee’s woes, raising concerns about India’s current account deficit and inflation outlook.

 

Outlook: Analysts expect the rupee to remain volatile, with a trading range of 85.25–85.75 likely in the near term, as markets monitor further developments in US-China trade talks, Fed policy, and global commodity prices.

 

Sources: The Core, Business Standard, Groww