Rupee Trades in a Narrow Range on Thursday Morning
The Indian rupee traded within a tight band and strengthened by 7 paise to 90.40 against the US dollar in early trade on Thursday, as corporate dollar demand persisted and investors remained cautious while awaiting confirmation on the India US trade agreement.Market participants shifted their focus from initial optimism to verification, as no official documents have been released so far and neither side has formally published the final terms of the proposed trade deal.
RBI Policy Decision in Focus
Apart from trade-related clarity, investor attention is also firmly on the upcoming interest rate decision by the Reserve Bank of India, scheduled for Friday. The policy outcome is expected to guide near-term currency movements.At the interbank foreign exchange market, the rupee opened at 90.52 against the US dollar before gaining ground to 90.40, marking a 7 paise rise from its previous close. In the previous session, the domestic currency had weakened by 15 paise to close at 90.47. During early trade on Thursday, it also briefly touched 90.53 against the greenback.
Market Caution Replaces Celebration
According to Amit Pabari, Managing Director of CR Forex Advisors, the market is currently awaiting confirmation and finer details before extending the rupee’s rally further. He noted that attention has now shifted to the central bank’s monetary policy stance.He added that markets largely expect the central bank to keep interest rates unchanged, with a growing consensus that rate cuts are unlikely at least until the end of 2026.
Global Cues and Technical Levels
In the global markets, the dollar index, which measures the US currency against a basket of six major currencies, was trading 0.18 percent higher at 97.79. Meanwhile, Brent crude, the global oil benchmark, declined 2 percent to USD 68.07 per barrel in futures trade.On the technical front, the 89.80 to 90.00 zone has emerged as a strong support area for the rupee. With this level holding firm, the currency pair appears positioned to move toward the 90.80 to 91.20 range, depending on upcoming policy cues and confirmation of the final trade agreement.
Equity Markets and FII Activity
Domestic equity markets opened on a weak note. The Sensex slipped 278.72 points to 83,538.97 in early trade, while the Nifty declined 94.15 points to 25,681.85.Foreign Institutional Investors turned marginal buyers in the previous session, purchasing equities worth Rs 29.79 crore, as per exchange data.
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