The Indian Rupee dropped several conditions in April, including the US Trade Policy Flip Flip and India-Pakistan voltage to be stronger on the back of the inflow in equities and as exporters increased dollar sales. On the last trading day of the month, the local unit hit its year to date and closed 84,4875 against the US dollar, by 0.91% higher on the day, and the highest since November 29. What are behind the profits in Indian Rupee? The currency rose 1.2% on the month, its second consecutive monthly increase, which contributed to extending a sharp turnaround in the fate of the rupee after it was to a low of 87.95 in February. The broad weakness in the dollar – on the back of concerns about a flurry of trade and other policy changes under US President Donald Trump – helped the gale after it rose more than 2% in March. The dollar index, meanwhile, was nursing losses of almost 4.5% on the month, the third consecutive monthly decline. MUFG Bank said that a “renewed risk-down (US) stock combined with falling leading returns, as the cutting of the rate of the rate is likely to strengthen only the disadvantage of the dollar,” said in a note and pointed to the impact of policy uncertainty. The Indian exporters increased the hedging activity in April, traders said, who further helped the rupee along with positive clues of power in its Asian counterparts. On the day, traders pointed out likely to flow into Indian stocks, expenditure -related dollar sales of exporters and a reduction of short bets on the currency as it rushes past an important technical resistance level. There was heavy inflow of US banks, while the central bank was absent and did not take up the flow, which led to a large one-way move in the second half of the session, a Treasury chief said at a foreign bank. Positive sentiment around a potential trade agreement between India and the US was also a wind wind for the rupee by the end of the month, even though some traders warned that an escalation in the tensions of India-Pakistan could renew the pressure. On the month, Indian benchmark Nifty 50 Equity Index rose 3.5%, while the 10-year effects dropped by 22 basis points. First published: 30 Apr 2025, 04:55 pm Ist
Rupee climbs to the highest level in five months on a softer dollar, strong FII inflow | Einsmark news
