The rupee has reached a peak of 84.78 to the dollar. New geopolitical concerns and rising demand for the US dollar combined to put pressure on the local currency, causing it to reach its highest level since the start of 2025. According to forex traders, the rupee’s decline is the result of a risk-off mentality in the market caused by the geopolitical tensions between India and Pakistan. Crude oil prices and inflows of foreign funds, however, mitigated the domestic unit’s losses.
The world oil benchmark, Brent crude, dropped 1.11 percent in futures trading to USD 63.54 a barrel. The dollar index, which measures how strong the US dollar is in relation to a basket of six other currencies, was up 0.11 percent at 99.34. Exchange data shows that on Tuesday, foreign institutional investors (FIIs) purchased stocks totaling Rs 2,385.61 crore on a net basis.
Before completing the first phase of the proposed bilateral trade agreement by the fall of this year, India and the US are currently looking into options for an interim trading arrangement in goods in order to obtain a “early mutual win.”
Both nations have started sectoral-level discussions, and more interactions are scheduled starting at the end of May, the commerce ministry announced on Tuesday.
According to a report released by the finance ministry on Tuesday, the economy can show robust growth despite global concerns if the proper policies are in place, domestic reforms are carried out, and infrastructure and job creation are given top priority.
