Rupee Hitting Its Highest Peak
The rupee got stronger today, going up by half a percent. Now you need 84.78 rupees to buy one dollar. This happened as other Asian currencies also became more valuable, with some even jumping by almost a full percent.
So far in 2025, this is the best the rupee has done. It’s been gaining value recently and is set to finish the month with a good jump of around 0.8%.
What made the rupee go up? Well, companies selling overseas decided to cash in and sell their dollars. At the same time, companies buying from abroad didn’t need to buy more dollars because they had already made their purchases earlier when the rupee wasn’t as strong.
Another reason the rupee went up is that it broke through a significant resistance point. This caused some automatic trades that bought rupees, making it rise faster.
According to a trader who spoke to Reuters, some banks had to get rid of the dollars they had. Now, the 84.70 to 84.75 level is an important area where the rupee is likely to find support against the dollar.
Another thing making investors positive, which in turn helps the rupee, is the possibility of a trade deal between India and the United States. US President Trump said on Tuesday that the tariff talks with India were “moving forward very well” and he thinks a deal is likely.
That good news about a possible India-US trade deal, along with the US dollar becoming less strong and people thinking the US central bank (Federal Reserve) will be less strict with its policies, has made things look better for most Asian currencies.
According to MUFG Bank, a weaker US dollar and a US Federal Reserve that’s more supportive of the economy could be good for the currencies of this part of the world.
The rupee had a really good month in March, increasing by 2% – its best performance since November 2018. It has continued to gain value in the weeks since then.
Still, some traders warned that there are still dangers. If there’s any increase in political problems around the world – especially on the border between India and Pakistan after what happened in Kashmir last week – it could hurt the positive feeling and make the rupee fall again.
But for the time being, it seems like the rupee is likely to keep doing well.