Rupee Rallies Past 84/USD Mark First Time Since Oct 2024 on Dollar Sales, Regional Support

Ketaan Ram Kataria

Patna: The Indian rupee rose strongly in early trade on Friday, crossing the 84-per-U.S. dollar level for the first time since October 2024. The rise was dominated by large dollar sales by foreign banks and regional currency strength, improving investor sentiment.

At around 9:41 AM IST, the rupee opened strong and gained further momentum as foreign institutional investors (FIIs) aggressively offloaded dollars. Dealers cited improved global risk appetite and a weaker greenback as key triggers behind the rally.

The U.S. Federal Reserve’s recent signal to pause interest rate hikes has led to a decline in the dollar index, providing room for emerging market currencies, including the rupee, to gain ground. In addition, strong macroeconomic fundamentals and consistent capital inflows have lent support to the local unit.

“The rupee’s movement today reflects both external tailwinds and internal resilience,” said a senior forex trader at a private bank. “If crude oil prices remain stable and FII flows continue, the rupee may test further gains.”

Experts, however, warned that global uncertainties, including geopolitical tensions and fluctuating commodity prices, may keep currency markets volatile.

This marks the rupee’s strongest showing in over six months, offering relief to importers while posing a fresh challenge to India’s export competitiveness.